Finfluencer Registration Improves, But Disclosure Gaps Persist

India’s financial influencer or finfluencer ecosystem is showing signs of greater regulatory awareness, but significant gaps remain in disclosures, accountability and investor protection, according to a new study by CFA Institute.

The findings are part of the second edition of CFA Institute’s research, Clicks and Credibility 2.0: From Influence to Accountability, Disclosures, and Policy Impact, which examines the growing role of financial influencers in shaping investment decisions in India. The study analysed publicly available content from 48 prominent finfluencers across Instagram, YouTube, LinkedIn and X between January and October 2025.

Only 6.3 per cent of the finfluencers studied were SEBI-registered, up from 2 per cent in the previous study. At the same time, 33.3 per cent were found to be making explicit stock recommendations. The gap highlights the challenge for regulators as investment-related content increasingly reaches large audiences through social media, often without investors having a clear understanding of the creator’s regulatory status.

Arati Porwal, Senior Country Head – India, CFA Institute

Arati Porwal, Senior Country Head – India, CFA Institute, says, “The unprecedented growth in retail participation in India’s financial markets requires a strong foundation in financial awareness, investor education and investor protection. As more investors turn to social media for financial information, finfluencers have an opportunity to expand financial awareness and participation. They, however, must be backed by transparent disclosures, ethical conduct and accountability. Through periodic reporting and research, CFA Institute aims to support constructive dialogue among regulators, platforms, market participants, content creators and more importantly investors, to ensure that innovation continues to strengthen, rather than compromise, investor trust.”

Disclosure of conflicts of interest remains a key concern. According to the report, 37.5 per cent of finfluencers did not adequately disclose conflicts of interest, including sponsored content and affiliate marketing arrangements. Investors may not always be able to distinguish between independent financial views and content influenced by commercial relationships.

The report also found that 72.9 per cent of finfluencers mentioned important investment considerations such as fees, tax implications and lock-in periods, while 27.1 per cent did not. The absence of such information could leave investors with an incomplete understanding of investment risks and costs.

Around 6 per cent of the sampled finfluencers had been publicly linked to issues relating to disclosures or conduct, while 4 per cent had faced SEBI penalties, underlining the need for stronger accountability mechanisms.

Social media has become a powerful channel for financial information. Instagram accounted for nearly half of the total followers among the finfluencers studied, while Instagram and YouTube together represented more than 90 per cent of cumulative audience reach. Half of the influencers analysed were aged 30 or younger, with the average age at 32 years.

The ecosystem is also geographically diverse. About half of the finfluencers analysed were based in Mumbai and Delhi NCR, while more than 10 per cent operated from outside India, highlighting the increasingly cross-border nature of financial content.

CFA Institute has recommended stronger and standardised disclosure frameworks, verification mechanisms for regulated advisers and enhanced monitoring of misleading content and AI-generated financial promotions. It has also called for a code of conduct for finfluencers, greater international regulatory cooperation and investor awareness campaigns to help individuals identify credible sources of financial information.

The report also flags the migration of investment discussions to private groups, webinars and closed online communities, where regulatory visibility may be limited. This could make it harder to monitor misleading claims and identify potential conflicts of interest.

Globally, regulators are moving towards greater oversight of digital financial communications. Countries including the UK, Australia, Singapore, France and the US have introduced or strengthened measures covering financial promotions, influencer disclosures and digital communications.

For India, the challenge will be to balance financial education with responsible investment communication. As retail participation in capital markets grows and more investors turn to social media for financial information, transparency and accountability will become increasingly important. Registration alone will not be enough; stronger disclosures, ethical standards, effective monitoring and investor awareness will be essential to ensure that finfluencers strengthen investor confidence rather than undermine it.