SEBI issues guidelines for adverts to control "finfluencers"

The code for advertisements from advisers covers traditional communication channels as well as all electronic, wired, or wireless communication.

In response to the proliferation of "finfluencers" who offer stock market advice online, the Securities and Exchange Board of India (Sebi) has released a new advertisement code for investment advisers and research analysts.

All communications that are released by or on behalf of such advisers and analysts and have the potential to have an impact on investment decisions are subject to this code.

The rule for advisers' advertisements covers both conventional media and any electronic, wired or wireless media, including email, message services, social media platforms, radio, telephone, and any other kind of online communication.

The advertisement must also contain the following standard warning: "Securities market investments are subject to market risks. Before making an investment, carefully read all the relevant documents." Also, no assurance of guaranteed or risk-free returns to investors shall be made in the advertisement.