YouTube removes financial influencer videos amid SEBI crackdown

New Delhi: YouTube has blocked numerous videos from financial influencers in India, following complaints from a “government entity”, suspected to be linked to the Securities and Exchange Board of India (SEBI). 

This action comes amidst SEBI's ongoing efforts to regulate the rampant spread of unauthorised financial advice and misinformation on social media platforms.

SEBI has been actively monitoring financial advice given by unregistered influencers, often referred to as 'finfluencers', who leverage platforms like YouTube to provide investment tips without the necessary licenses. 

The recent enforcement has seen YouTube taking down content that was deemed to violate regulations under the SEBI Act of 1992, specifically under Regulation 12(1) & 12A, which mandates that entities dealing in listed securities must be registered with SEBI.

The crackdown has not only affected those without SEBI registration but has also inadvertently included content from registered financial analysts who have been caught in the crossfire. 

These analysts, who claim to follow all regulatory guidelines including displaying their registration numbers and disclaimers, were surprised by the sudden removal of their videos without prior notice.

The actions are backed by the Indian IT Act, which empowers the government to direct intermediaries like YouTube to block content that could threaten public order or violate applicable laws.