Since an amendment of 29 August 2024 to the SEBI (Intermediaries) Regulations, research analysts and investment advisers may not associate with people who give securities advice without registration or who make unpermitted claims about returns. SEBI circulars of 22 October 2024 and 29 January 2025 set out how the rule works, and existing contracts had to end by 21 January 2025.
What the rule says
Regulation 16A of the SEBI (Intermediaries) Regulations 2008, as amended on 29 August 2024, bars a regulated person and its agents from associating, directly or indirectly, with two groups: persons who give advice or recommendations on securities without SEBI registration, and persons who make claims of returns or performance that are not permitted. Para 21 of the RA Master Circular and para 22 of the IA Master Circular apply this to RAs and IAs.
Key dates
The rule came in over a few months, and the transition period for existing deals is now over. Any tie-up that started before the rule and is still running needs review now, because the date for ending existing contracts has passed.
| Date | Event |
|---|---|
| 29 August 2024 | Regulation 16A of the Intermediaries Regulations amended |
| 22 October 2024 | SEBI circular on the association ban |
| 21 January 2025 | Existing contracts with barred persons to end |
| 29 January 2025 | Further SEBI circular on the association ban |
| 4 May 2026 | PaRRVA live for verified performance claims |
Who you can and cannot work with
The test is not whether someone has a large following. It is whether the person advises on securities without SEBI registration, or makes return or performance claims that are not permitted. A registered RA or IA who follows the advertisement code is not in either group. An unregistered person who posts buy and sell calls, or who promises returns, is.
The ban is direct or indirect and covers agents, so it reaches affiliates, referral partners and marketing agencies acting for you. Paying an agency that in turn pays a barred influencer is likely to count as indirect association. Ask agencies to confirm in writing who will create and publish content for you.
Signals that need a closer look
Some marketing arrangements carry a higher chance of crossing the line. Check any collaborator where the content uses wording like the following. Such wording does not prove a breach, but it signals a commercial link that should be checked against the collaborator's SEBI registration.
- Paid partnership or sponsored by
- Promo code, referral code or use my link
- Affiliate link or brand ambassador
- In collaboration with
Performance claims and influencers
Unpermitted claims of returns or performance are part of the test, which links the association ban to the advertisement code. Past performance may be advertised only if verified by PaRRVA, live since 4 May 2026. An influencer who shows profit screenshots or accuracy percentages about your service creates a problem for you as well as for them.
Your own content still has to comply
Working only with registered people does not remove your own duties. Every advertisement, including social posts and messages, needs BSE's prior approval, the registered details and the standard risk warning. From 1 May 2026, each social media handle must show the registered name and number, and so must the start of each piece of securities market content.
A partner register
Keep a register of every influencer, affiliate and partner with their SEBI registration status, the date you checked it and the content they produce for you. End any tie-up with an unregistered adviser or a maker of return claims. For help keeping checks like this on a schedule, XDQ Labs offers XDQ xAgents for RAs and IAs (/product/xfintech-agents/). This guide is general information, not legal or investment advice. Confirm with your compliance officer.
Frequently asked questions
Can a SEBI RA pay a finfluencer to promote its service?
Not if the finfluencer gives securities advice without SEBI registration or makes unpermitted claims of returns or performance. Regulation 16A of the Intermediaries Regulations bars direct and indirect association with such persons.
When did the finfluencer ban start for RAs and IAs?
Regulation 16A was amended on 29 August 2024, with SEBI circulars on 22 October 2024 and 29 January 2025. Existing contracts with barred persons had to end by 21 January 2025.
Does the ban cover affiliates and agencies?
Yes. The rule applies to the regulated person and its agents and covers direct and indirect association, so affiliates, referral partners and agencies acting for an RA or IA are within scope.
Can an RA or IA work with another registered person?
The association ban targets persons who advise on securities without SEBI registration or who make unpermitted return claims. A registered person who follows the advertisement code falls outside those groups, but check registration and content before any tie-up.
Sources
- Master Circular for Research Analysts, 6 February 2026, SEBI, 2026
- Master Circular for Investment Advisers, 6 February 2026, SEBI, 2026
- SEBI circular on the Past Risk and Return Verification Agency (PaRRVA), April 2026, SEBI, 2026
- SEBI (Research Analysts) Regulations, 2014, amended up to 10 October 2026, SEBI, 2026
- SEBI (Investment Advisers) Regulations, 2013, amended up to 25 November 2025, SEBI, 2025
- RAASB and IAASB enlistment portal, BSE Limited, 2026
