The Securities and Exchange Board of India (SEBI) will amend its regulations to prohibit the use of live or current market data in investor-education materials, permitting only past data for such purposes. SEBI Chairman Tuhin Kanta Pandey made the announcement on Monday during an event at the National Stock Exchange, emphasising the move’s objective to eliminate confusion and misuse of real-time market information in public-facing educational content.
Pandey acknowledged inconsistencies in two existing SEBI circulars related to live data usage and said the regulator would issue clarifications soon. “Only past market data will be used for educational purposes; current data should not be used,” he stated, reaffirming SEBI’s commitment to maintaining market integrity and investor safety.
Move Aims to Counter Misleading Finfluencer Practices
The decision comes days after SEBI imposed a penalty and ordered disgorgement of over ₹546 crore from financial influencer Avdhoot Sathe, ruling that his activities constituted unregistered investment advisory under the guise of education. Pandey noted that SEBI’s recent survey found 62 percent of respondents based their investment decisions on finfluencer advice, while only a third understood the securities market adequately.
He warned that exaggerated or fabricated claims by influencers and unregistered advisors were deepening investor vulnerability, stressing that “our regulations clearly say that one cannot give stock-tip advice.” SEBI’s intent, he said, is to draw a sharper line between genuine education and disguised investment solicitation.
Launch of PaRRVA: A First-of-Its-Kind Verification Mechanism
In a major step toward transparency, SEBI launched the Past Risk and Return Verification Agency (PaRRVA) — developed in collaboration with the NSE and CAREEdge Ratings. The agency will independently verify the historical returns claimed by registered intermediaries such as investment advisers, research analysts, and algorithmic-strategy providers.
Pandey described PaRRVA as a “global precedent” for formal verification of performance claims in the financial sector. “It is essential to have credible performance data to manage investor expectations and promote responsible investing,” he added.
Addressing Gaps in Market Education and Regulation
SEBI officials clarified that there is no “regulatory vacuum” regarding investor-education content but admitted that many violations arise from a lack of understanding among content creators. By banning live data use, SEBI intends to ensure that educational initiatives remain factual, non-promotional, and free of manipulative real-time market interpretations.
The regulator also plans to conduct training sessions for registered market educators to ensure compliance with the updated framework. These sessions will aim to bridge the gap between regulatory intent and content execution on digital platforms.
Strengthening Investor Confidence and Market Discipline
Together, the ban on live market data and the introduction of PaRRVA mark a comprehensive strategy to protect retail investors from unverified advice. SEBI said the measures will “improve transparency, ensure accountability, and reduce the influence of misleading market narratives.”
Experts believe the move could set a precedent for global regulators amid the growing influence of social media on financial decision-making. The combination of rule amendments and performance verification could make India one of the first markets to formally regulate the intersection of education, content, and investment advice.
