Think Before You Follow!
The Hidden Risks of Taking Advice from Unregistered Investment Advisors on Social Media Platforms
Think Before You Follow!
The Hidden Risks of Taking Advice from Unregistered Investment Advisors on Social Media Platforms
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In today's social media age, financial advice is just a reel away.
A smiling Instagrammer claims, “Invest ₹5,000 a month and become a crorepati.”
A YouTube video guarantees returns in six months.
A tweet announces the “next big stock.”
Sounds exciting, right? But here's the catch:
Many of these so-called finfluencers are not qualified professionals. While a few may be registered Research Analysts or Investment Advisors, most are unregistered individuals-and acting on their advice can cost you dearly.
A March 2025 report (CFA Institute) reveals that 82% of investors influenced by social media have acted on finfluencer advice. Only 2% of these influencers are SEBI-registered, even though 33% give direct stock recommendations-raising serious concerns about regulatory oversight. Worse, 8% of investors-rising to 14% among those over 40-reported being misled or scammed.
The question isn't whether finfluencers influence decisions-it's whether they're qualified and accountable to do so.
They're content creators who talk about stocks, mutual funds, crypto, IPOs, and trading. Their posts make investing look simple and entertaining-and they often attract massive followings.
While some aim to genuinely educate, many lack the qualifications or licenses to offer investment advice.
Some promote financial products in exchange for money-without disclosing their affiliations. Others offer “personal tips” via DMs.
Recognizing the risks, SEBI released a consultation paper in 2023
(https://www.sebi.gov.in/reports-and-statistics/reports/aug-2023/consultation-paper-on-association-of-sebi-registered-intermediaries-regulated-entities-with-unregistered-entities-including-finfluencers-_75932.html) and launched a crackdown on unregistered influencers. It also barred SEBI-regulated entities from associating with them.
SEBI has made it clear:
Only registered intermediaries can offer investment advice.
As per SEBI rules:
Registered advisors must meet strict qualification and certification norms.
They must disclose any conflicts of interest.
They cannot guarantee returns.
You can verify an advisor's credentials here:
👉 SEBI Registered List
Pump-and-dump schemes: They promote dubious stocks, drive up prices, then sell at a profit-leaving you with losses.
Hidden promotions: Products or apps they endorse may be paid partnerships, undisclosed.
Capital loss: Poor advice = bad decisions = real financial damage.
No accountability: If their “tips” fail, you have no formal recourse.
Remember: Going viral isn't the same as being qualified.
Don't act blindly on social media advice-regardless of likes or followers.
Always verify if the person is SEBI-registered before trusting financial tips.
Avoid platforms or apps promoted by unverified influencers-especially those promising fast gains.
Never share personal financial information (like PAN, income, or goals) on social platforms.
Report misleading content to SEBI or via cybercrime.gov.in.
Final Word: Likes Can Be Bought. Trust Can't Be.
Your financial future deserves advice backed by knowledge and accountability-not viral charm.
SEBI-registered advisors are trained, regulated, and responsible. That's not something social media popularity can replace.
So before you follow, invest, or act-
Pause. Check. Verify.
And be an Atmanirbhar investor.
Download the SAARTHI App.
