Does a "not SEBI registered" disclaimer protect a finfluencer?

Regulation 3 of the SEBI (Research Analysts) Regulations, 2014 and regulation 3 of the SEBI (Investment Advisers) Regulations, 2013 both say no person shall act as, or hold themselves out as, a research analyst or investment adviser without a certificate. Neither has an exception for someone who tells the audience they are unregistered.

What the regulations look at

A research analyst is a person who, for consideration, is in the business of providing research services. The services listed in regulation 2(1)(wa) include buy, sell or hold recommendations, price or stop loss targets, model portfolios and trading calls on listed securities, given "to the clients or other persons or group of persons or general public", whatever job title the person uses.

That definition reaches past subscription fees. The texts we read give no list of what counts, so sponsorships, affiliate links and paid groups each need reading against it. The definition of investment adviser also includes anyone who holds themselves out as one, by whatever name. Under the provisos to regulation 2(1)(l) of the IA Regulations, though, advice in widely available public media and trading calls are not investment advice, so for public stock calls the research analyst rules are the ones that bite.

What a disclaimer does do

It records, in your own words, that you know you are unregistered. It does not move a stock call into the excluded list. SEBI's list of what is not a research report covers general market trends, broad indices, economic and political commentary, sector or index demand and supply analysis, and a few others. Calls on named stocks are not on it.

Registered firms cannot work with you

Regulation 16A of the SEBI (Intermediaries) Regulations, 2008 bars every SEBI-registered person, brokers included, from any direct or indirect association with someone who gives securities advice or recommendations without registration, or who claims returns without permission. Association means money or money's worth, client referrals, linked IT systems or anything similar. A paid tie-up or a referral code with a broker is the kind of link that definition describes. The bar lifts for a person engaged purely in investor education who gives no advice and makes no return claims, and for association through a SEBI-specified digital platform.

The two clean options

• Teach without recommending. Concepts, how to read a balance sheet, how indices work, market commentary. Nothing that says buy, sell or hold a named stock, no targets, no claims of returns.
• Register as a research analyst. A creator with a day job unrelated to securities can register part-time, up to 75 clients. An individual needs a graduate degree or CFA Charter plus NISM Series XV, a ₹1 lakh deposit and ₹5,000 in SEBI fees.

Our view: the disclaimer is the worst of both. It keeps the stock calls and adds a written admission. If your content is worth paying for, registration is the better path. The route is in how to become a SEBI registered research analyst. Send us a few of your posts and we will tell you which side of the line they sit on.