- Majority of finfluencers unregistered despite offering explicit stock recommendations.
- Many finfluencers inadequately disclose conflicts of interest and partnerships.
- Some omit crucial investment risks like fees and taxation.
A majority of financial influencers, or finfluencers, operating in India continue to remain outside the regulatory framework despite many offering stock recommendations to their followers, according to a new report by the CFA Institute.
The report, Clicks and Credibility 2.0: From Influence to Accountability, Disclosures, and Policy Impact, found that only 6.3 per cent of the finfluencers studied were registered with the Securities and Exchange Board of India (SEBI). At the same time, one in three continued to issue explicit buy, sell or hold recommendations on securities, highlighting the gap between regulated investment advice and financial content shared on social media.
Few Registered Despite Offering Investment Advice
The CFA Institute analysed 48 finfluencers operating primarily in India between January and October 2025.
Of the 48 creators examined, only three were registered with SEBI. Meanwhile, 16 finfluencers, or 33.3 per cent of the sample, were found to be making explicit recommendations on securities, reported Moneycontrol.
Among those 16 creators, only two were SEBI-registered. The remaining 14 were unregistered despite providing investment recommendations, a practice that the report said “may warrant further examination from the regulator.”
According to the study, there has been only limited improvement since its previous assessment. While the proportion of SEBI-registered finfluencers increased from 2 per cent in the 2025 edition of the report to 6.3 per cent in the latest analysis, the share making explicit stock recommendations remained unchanged at 33 per cent, suggesting that the gap between regulated advice and current online practices continues.
Disclosure Standards Remain Inconsistent
Apart from regulatory registration, the report also raised concerns over disclosure practices adopted by finfluencers.
It found that 62.5 per cent disclosed potential conflicts of interest, including sponsored content and affiliate marketing arrangements, while the remaining 37.5 per cent did not make such disclosures.
A similar pattern was observed for brand partnerships and sponsorships. Nearly two-thirds of the creators disclosed commercial associations, but 37.5 per cent did not.
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The CFA Institute noted that the absence of a disclosure does not necessarily indicate the existence of an undisclosed commercial relationship. However, it said inconsistent disclosure practices make it more difficult for investors to identify potential conflicts of interest and evaluate the credibility of financial content.
Investment Risks Not Always Fully Explained
The report also assessed whether finfluencers provided broader investment-related information beyond stock recommendations.
It found that 72.9 per cent discussed factors such as fees, taxation and lock-in periods while explaining investment products. However, more than one in four omitted these considerations, which the report identified as a concern because retail investors may not always receive complete information before making financial decisions.
Instagram And YouTube Continue To Dominate
According to the report, Instagram and YouTube remain the primary platforms through which finfluencers engage with retail investors.
Nearly 98 per cent of the creators analysed published Instagram Reels, while 83.3 per cent produced YouTube Shorts and 79.2 per cent uploaded long-form videos. Most creators used several content formats simultaneously, with the median finfluencer relying on five different formats.
Posting frequency also remained high. More than 64 per cent shared content daily or on alternate days, while 83 per cent published at least two posts every week.
The report further found that half of the sampled finfluencers were aged 30 years or younger, with an average age of 32 years. Around 71 per cent were men, and nearly half were based in Mumbai or Delhi-NCR. Instagram and YouTube together accounted for more than 90 per cent of the total followers of the creators included in the study.
Report Suggests Stronger Oversight
The CFA Institute highlighted several recurring issues, including the lack of clear identification of paid collaborations, the use of generic references instead of naming sponsoring brands, and potential conflicts arising from businesses linked to wealth advisory, taxation or legal services.
It also referred to anecdotal evidence of stock recommendations being shared through offline seminars and closed investor groups, making regulatory oversight more challenging.
To strengthen investor protection, the report recommended introducing standardised disclosure norms, creating a dedicated code of conduct for finfluencers and enhancing collaboration between SEBI and social media platforms.
It also suggested introducing verification mechanisms that clearly distinguish SEBI-registered investment advisers from unregistered creators. In addition, the report called for tighter monitoring of AI-generated financial content and misleading promotions, while urging platforms to restrict the algorithmic amplification and monetisation of accounts offering investment advice without regulatory registration.
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