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Leading financial influencer Sharan Hegde said the regulations around finfluencers that SEBI is set to introduce will not lead to significant disruption or end the role of financial influencers.

“Most people assume that SEBI has now come up with the report for finfluencers so finfluencers are over. But what it exactly says is that as an unregistered person with SEBI, I am not allowed to promote SEBI regulated products, which are stocks and mutual funds.”

He said that less than 1% of influencers do this and the rest largely advise people at a broader level.

“I can say that you should buy mutual funds across midcap, smallcap, and large-cap depending on your income,” he said.

“I cannot tell you to buy this particular mutual fund or this particular stock. That is something many people don’t understand.”

Hegde was talking about finfluencers during a fireside chat at YourStory’s flagship tech event Techsparks 2023 in Bengaluru. He said he welcomes the regulation as it brings credibility to the work done by influencers. 

“Until last year, when you think of influencers, people think of comedians, entertainers,” he said. “The regulations make it a fact that we are relevant…that is a good mark of credibility.”

Hedge, better known as Finance With Sharan online, has 2.3 million followers on Instagram, 2.2 million subscribers on YouTube, and 64,000 on Twitter. In April 2022, he started The 1% Club, which Hegde claims to be an exclusive members-only community to help people achieve financial independence and become the top 1%. 

In September this year, SEBI issued a proposal that would bring finfluencers who charge as high as Rs 7.5 lakh for a post on social media under its purview. Under this fresh proposal, finfluencers will be required to register with Sebi and adhere to specific guidelines. Also, it has been proposed to ban unregistered finfluencers from partnering with mutual funds and stockbrokers for promotional activities.