More than half of the investors look to 'finfluencers' for advice, shows Sebi survey

At a time of continued concerns over unregistered financial advisors on social media, a Sebi survey has found that 'finfluencers' are the most popular source of financial advice for investors, just after friends and family.

Nearly 56 percent of the respondents suggested that they turn to finfluencers for investing advice, with nearly 93 percent finding them to be moderate or highly credible, of which, nearly two-thirds (62%) said saying these voices directly shape their investment decisions.

YouTube emerged as the most popular platform for financial influencers, followed by Instagram (64%), Facebook (61%), X/Twitter (11%), and LinkedIn (4%), showed the survey. Investors place substantial trust in these voices, with 66% rating them “somewhat credible,” 18% “mostly credible,” and 9% “very credible,” while only 7% view them as “not credible at all”.

These findings come at a when Sebi, over the years, has taken significant steps to regulate unregistered finfluencers. In June 2024, the regulator barred registered entities from associating with unregistered investment advisors, permitting collaboration only for purely educational content. Sebi also barred educators from displaying live stock prices, names, or codes in ways that could be construed as investment advice, a move aimed at stopping real-time trading tips disguised as education. High-profile enforcement actions too have followed, include raids on finfluencers promoting penny stocks, and bans on individuals involved in “pump-and-dump” schemes.