New Delhi: In an important step against finfluencers—social media influencers creating finance-related content—the Securities and Exchange Board of India (SEBI) has introduced strict new guidelines. On Wednesday SEBI released a circular in which the regulator informed that the content creators can only use stock prices with a three-month delay in educational content. This rule aims to prevent financial influencers from presenting real-time market data under the guise of financial education ensuring their opinions are not mistaken for real-time trading insights. A person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities wrote SEBI. Such (a) person should not be using the market price data of the preceding three months to speak/talk/display the name of any security including using any code name of the security in his/her talk/speech video ticker screen share etc. indicating the future price advice or recommendation related to security or securities it noted. Key provisions in the SEBI circular: No unverified investment advice No fake promises Stockbrokers exchanges and financial firms can’t associate with those breaking these rules. If a financial company works with someone making false claims they will also be held accountable. Teaching about the stock market is okay but sneaking in tips or predictions isn’t. Entities registered with SEBI are barred from associating themselves with any finfluencer whether it’s through a financial partnership or promotional collaboration. No exchanging money referrals or customer data with rule-breakers. Those violating the new rules will be subjected to penalties suspension or even cancellation of their SEBI registration. These rules have been in effect since August 29 2024 and firms had until January 2025 to comply. If a company doesn’t control where its digital ads appear they could unknowingly break the rules. According to the SEBI circular individuals engaged in stock market education must refrain from displaying or discussing stock prices from the past three months. This includes mentioning security names using code names or displaying real-time price data in any form that could imply investment recommendations.