Sebi Rules Reshape Finfluencer Economy: From Viral Reels to Registered Firms

• Sebi regulations have rewired the finfluencer industry, pushing creators towards formal registration as Research Analysts (RA), Registered Investment Advisors (RIA), or Mutual Fund Distributors (MFD).
• Shashank Udupa, founder of Vayu Capital, secured an RA license and successfully launched a subscription-based research product, exceeding initial subscriber targets.
• Other finfluencers like Sharan Hegde of The 1% Club have also obtained RIA licenses, pivoting to legally monetize trust built with their audience.
• The regulatory shift has led to a decline in brand deal values and a focus on established brands, with creators moving towards sustainable business models like subscriptions and products.
• Udupa plans to expand Vayu Capital into a corporate RA, launch a PMS offering by 2027, and invest in research, emphasizing the long-term viability for serious creators.