SEBI Finfluencer Rules: Is Your Stock Advisor Registered?

Last month a Pune teacher joined a Telegram group that promised “guaranteed 30% monthly returns” and charged ₹5,000 for daily stock calls. The admin had no SEBI number. That is exactly the kind of unregistered “finfluencer” that the Securities and Exchange Board of India (SEBI) moved against in 2024 and 2025. If someone takes your money for investment advice on shares or mutual funds, they must hold a valid SEBI registration. If they do not, walk away.

Short on time? Jump to the numbered steps below and check your advisor on SEBI's website, sebi.gov.in, before you pay a rupee.

You can verify any genuine adviser in about two minutes. A real Investment Adviser (IA) or Research Analyst (RA) will share their registration number without hesitation.

1. Ask for their SEBI registration number. Every registered IA or RA has a unique number starting with “INA” (Investment Adviser) or “INH” (Research Analyst). If they dodge the question, that is your answer.
2. Cross-check the SEBI list. Go to SEBI's website, sebi.gov.in, and open the public list of registered Investment Advisers or Research Analysts. Search by name or by the registration number they gave you.
3. Verify the name and validity. Confirm the name on the list matches the person or firm advising you, and that the registration is current and not expired or suspended.

If the number does not appear on SEBI's list, or the name does not match, treat the advice as illegal. Do not transfer money. For a deeper walkthrough of spotting fakes, read our guide on the fake mutual fund advisor scam in India.

SEBI amended the SEBI (Investment Advisers) Regulations, 2013 and the SEBI (Research Analysts) Regulations, 2014 on 16 December 2024. It then issued detailed operative guidelines through two circulars dated 8 January 2025.

On 29 January 2025, SEBI released FAQs that spell out the core rule. SEBI-regulated entities cannot associate, directly or indirectly, with unregistered finfluencers who give investment advice or make claims about returns or performance on securities. This “no-association” rule covers stock brokers, portfolio managers, investment advisers, research analysts and asset management companies (AMCs).

In plain terms: a licensed broker can no longer pay, partner with, or run referral deals with an unregistered tipster on YouTube, Telegram or Instagram. This cuts off the money and reach that powered the finfluencer boom.

SEBI also closed a side door. A person who gives investment advice or makes return claims on securities is not eligible to register as a part-time Investment Adviser or Research Analyst. So an unregistered tipster cannot quietly become a “part-time” adviser to look legitimate.

Two rules give individual investors real protection.

Fee cap. A registered Investment Adviser cannot overcharge an individual or Hindu Undivided Family (HUF) client. Fees are capped at ₹1,51,000 per year per family. If the adviser charges on an assets-under-advice basis instead, that is capped at 2.5% per year. If anyone demands open-ended fees or a cut of your profits, that breaks the rule.

MITC disclosure. From 17 February 2025, both Investment Advisers and Research Analysts must give you a “Most Important Terms and Conditions” (MITC) document. This is a plain-language summary of fees, risks and what the adviser will and will not do. A genuine adviser hands you the MITC up front. No MITC is a warning sign.

Research Analysts must also enlist with the Research Analyst Administration and Supervisory Body (RAASB). This is the body that supervises RAs, so an analyst who is not enlisted is operating outside the system.

Run through this checklist before you pay anyone for stock or fund tips.

1. Guaranteed or “fixed” returns - no honest adviser can promise a return on securities.
2. Profit-sharing demands - asking for a percentage of your gains is not allowed for individual clients.
3. No SEBI registration number, or a number that fails the sebi.gov.in check.
4. Pressure to act now - “buy in the next 10 minutes or miss out.”
5. No MITC document and no written terms.
6. Payment to a personal account or a private UPI ID instead of a registered entity.
7. Tips only inside a paid Telegram or WhatsApp group with no verifiable identity.

If two or more of these apply, you are almost certainly dealing with an unregistered finfluencer. To understand which watchdog handles which complaint, see our hub on which regulator to complain to in India.

If an unregistered advisor has misled you or taken your money, complain to SEBI through SCORES, its official online complaint portal. SCORES routes your complaint to the right entity and tracks the response.

1. Lodge the complaint on the SEBI SCORES portal with all proof: screenshots, payment records and chat logs.
2. Keep every receipt and message. They are your evidence if you seek a refund or a regulatory action.
3. For mutual fund and demat-related grievances, you can also use the wider grievance routes covered in our guide on mutual fund and demat grievance through SEBI SCORES and SmartODR.

A note on RTI: filing a Right to Information request with a regulator has limits, and you cannot use RTI to force a private finfluencer to refund you. For investor grievances, SEBI SCORES is the correct channel, not RTI. For a step-by-step on the complaint flow, read how to file an investor complaint on SEBI SCORES.

To understand your rights as a citizen across regulators and grievance systems, keep The RTI Playbook handy.

• Ask your advisor for their SEBI registration number in writing.
• Search that number and name on SEBI's website, sebi.gov.in.
• Check that you received an MITC document and a written fee structure.
• If anything fails, stop all payments and save every screenshot.
• If you have already lost money, draft a SCORES complaint with your evidence.

Ask for their SEBI registration number, which starts with “INA” for an Investment Adviser or “INH” for a Research Analyst. Then search that number or their name on the public list of registered advisers on SEBI's website, sebi.gov.in. Confirm the name matches and the registration is still valid. If the number is missing or the name does not match, the advice is not authorised and you should not pay.

Giving general financial education is allowed. But giving specific investment advice or making claims about returns on securities, for money, requires SEBI registration. Since the 2024 and 2025 rules, SEBI-regulated entities such as brokers and AMCs cannot associate with unregistered finfluencers who do this. An unregistered person making return claims is also barred from registering as a part-time Investment Adviser or Research Analyst.

A registered Investment Adviser cannot charge an individual or HUF client more than ₹1,51,000 per year per family. If the adviser charges on an assets-under-advice basis instead, the fee is capped at 2.5% per year. Any demand for profit-sharing or open-ended, uncapped fees breaks the SEBI (Investment Advisers) Regulations, 2013 and is a clear red flag.

MITC stands for “Most Important Terms and Conditions.” From 17 February 2025, every Investment Adviser and Research Analyst must give you this plain-language summary of fees, risks and the scope of their service. It protects you by stating, up front and in writing, exactly what you are paying for. If an advisor cannot or will not provide an MITC, treat that as a sign they are not properly registered.

Complain to SEBI through its SCORES portal, the official online grievance system for investors. Attach all your evidence, including chat screenshots, payment records and any return promises made to you. SCORES forwards your complaint and tracks the reply. Filing an RTI does not work against a private finfluencer, so use SCORES for investor grievances rather than the RTI route.

Recovery is possible but not guaranteed, and it depends on your evidence. File a SEBI SCORES complaint immediately and preserve every receipt, message and screenshot. For mutual fund and demat disputes you can also use SmartODR, the online dispute resolution mechanism. If the amount is large or fraud is involved, you may additionally need to file a police complaint. Acting fast and keeping records gives you the best chance.

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