Sebi issues code for ads to rein in 'finfluencers'

MUMBAI: The Securities and Exchange Board of India (Sebi) has issued a new advertisement code for investment advisers and research analysts following the mushrooming of 'finfluencers' who give online advice on stock markets.

This code is applicable to all forms of communications that are issued by or on behalf of such advisers and analysts that could influence investment decisions.

The code for advertisements from advisers covers traditional communication channels as well as all electronic, wired, or wireless communication such as e-mail, messaging platforms, social media platforms, radio, telephone, or any other form over the internet.

The advertisement must also include a standard warning, which states, "Investment in securities market are subject to market risks. Read all the related documents carefully before investing." Moreover, the advertisement shall not make any promise or guarantee of assured or risk-free returns to the investors.