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

On 15 September 2023, the Securities and Exchange Board of India (SEBI) closed its consultation on its proposed rule aiming to curtail the affiliation between SEBI-registered intermediaries and unregistered financial influencers. 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.