India: Opened consultation on proposal to restrict association of SEBI registered intermediaries with unregistered financial influencers

On 25 August 2023, the Securities and Exchange Board of India (SEBI) initiated a public consultation regarding their proposition to limit the connection between SEBI-registered intermediaries and unregistered financial influencers. The consultation period remains active until 15 September 2023. Unregistered financial influencers often encourage their followers to make purchases in exchange for undisclosed compensation from platforms or producers. The proposed limitation seeks to curtail the occurrence of such undisclosed compensation. The consultation paper suggests a prohibition on SEBI-regulated entities collaborating or associating with unregistered financial influencers.