The Securities and Exchange Board of India (Sebi) has launched a search operation against a prominent financial influencer in Mumbai, signalling a tougher stance on unregistered advisors and market malpractice.
Confirming the action at a FICCI capital markets conference in Mumbai on Thursday, Sebi whole-time member Kamlesh Varshney said, “It’s a big name in that industry." He, however, declined to reveal the individual’s identity.
Varshney stressed that Sebi’s focus was not revenue collection but deterrence. “The idea is to create fear in the market that there is law enforcement, that there is a regulator watching you—so people follow the law voluntarily,” he said, echoing the regulator’s chairperson’s philosophy.
While many influencers provide legitimate investor education, some, Varshney noted, mis-sell or offer unauthorised stock tips, sometimes using live trading data. “If you are misguiding youth in the name of education, promising guaranteed returns, or giving calls in the classroom, you cannot do that without Sebi registration,” he warned.
The raid forms part of Sebi’s ongoing crackdown on unregistered advisors and high-profile finfluencers. “Quality is more important than number,” Varshney remarked, adding that the regulator was determined to pursue major players in the ecosystem.
On broader surveillance, he said Sebi has upgraded its technology to flag violations in real time and is recruiting specialist talent to counter sophisticated market manipulation tactics such as algorithmic trading abuses and gamma manipulation.
Varshney also highlighted Sebi’s efforts to streamline IPO clearances, pointing out that the regulator processed a record 21 applications in July. He acknowledged industry concerns over strict investment advisor rules but said recent relaxations in education and fee norms were aimed at balancing investor protection with market participation.