YouTube blocks influencers’ videos on complaints from a mysterious government entity

Influencers, who rely on platforms like YouTube to share content related to personal finance, market trends, and stock recommendations, have reported that their videos were blocked without prior notice. Mint obtained a copy of a notice sent by YouTube after the videos were removed, which stated that YouTube had received a “legal complaint from a government entity regarding the content".

It added: “After review, the following content has been blocked from view on the YouTube country site ‘India’. If your content was restricted in error, please let us know. You can submit the form only once per video URL."

Data on the number of financial influencers and analysts registered with the Securities and Exchange Board of India affected by YouTube’s move wasn’t available.

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The abrupt takedowns have caused significant disruption for financial content creators, many of whom rely on YouTube as their primary platform for income.

Financial educators and Sebi-registered analysts told Mint they had always been transparent about disclaimers in their videos, and the blocking of content without any prior warning was surprising.

In response to emailed queries from Mint, YouTube clarified that the platform has clear policies for handling removal requests from governments, regulators, and law enforcement agencies worldwide. “We review these requests when notified through the appropriate legal processes, and also review content for violations of our Community Guidelines."

The platform added that, where appropriate, it restricts or removes content in compliance with local laws and its terms of service after a thorough review. “All of these requests are tracked and included in our Transparency report," YouTube said.

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Regulatory scrutiny intensified

YouTube’s actions come amid increased scrutiny by Sebi over financial advisers offering unsolicited investment advice without proper registration or qualifications.

During an event, Sebi whole-time member Kamlesh Varshney mentioned that Sebi had been flagging unregistered financial advice across various online and social media platforms. “Within 24-28 hours, it is taken down. Thousands have been taken down in the last two months," he said.

Between June and August, Sebi ensured the removal of about 15,000 pieces of content were removed to protect investors.

“This is instant action," Varshney said, explaining that enforcement actions can take anywhere from six months to a year. “By that time, more people could lose money. We are acting immediately, and some social media platforms are cooperating with us," he added.

Also read | Experts divided on Sebi rules barring finfluencers from giving investment advice

On 22 October, Sebi ordered regulated entities, including recognized stock exchanges, clearing corporations, and depositories, to terminate any existing contracts with unregistered financial advisers within three months, to protect investors and ensure market integrity.

This followed Sebi’s 27 June decision barring registered entities from associating with unregistered content creators who offer advice, recommendations, or make claims about the performance of any security. Sebi also clarified that content creators who name specific stocks on social media must be avoided by regulated entities.

Mint reached out to Sebi for clarification on whether the complaints were indeed lodged by the regulator but did not receive a response.

Financial influencers confused

The move by YouTube has sparked outrage on social media, with many users and influencers accusing the platform of censorship.

A week ago, finfluencer Akshat Shrivastava posted on X that 17 videos had been taken down from his Hindi channel, which has about 314,000 subscribers. As his post gained traction, several other aggrieved influencers, including Vibhor Varshney, a Sebi-registerd financial adviser, and Vijay Thakkar, also raised their concerns.

YouTube acknowledged these posts, stating it was looking into the concerns but no further action had been taken yet.

Varshney did not immediately respond to Mint’s queries. Thakkar, a trader and financial educator with about 300,000 subscribers on YouTube, said the number of finfluencers sharing trading tips had “grown considerably" since covid, as they see financial content creation as a lucrative activity.

“However, we have been educating and raising awareness about trading since September 2018 without the intention of collaborating with or endorsing any brands," said Thakkar.

He shared on social media that YouTube had blocked 124 videos from his channel. “It is like YouTube threw a net to catch fish and took down whoever came under their automated algorithm without giving a chance to contest or justify their videos," he said.

Thakkar explained that YouTube sent 124 emails—one for each video blocked—with a link to raise grievances.

However, the platform did not specify which laws were allegedly breached. “YouTube’s notices have not specified which laws we have breached, so it is very difficult for us to contest their claims—124 times," he said.

Thakkar also emphasized that this action could damage his reputation, as people unfamiliar with him might assume he was offering stock advice and that led to YouTube blocking his videos.

Also read | Why Sharan Hegde’s financial advisory business is a test for Sebi's rules regulating ads by advisers and finfluencers

YouTube has also blocked videos from registered analysts.

Investing app PaisaSmart, the operating brand name for Elixir Equities, a Sebi-registered research analyst platform, is also among those affected. YouTube blocked 10 videos from PaisaSmart.

Varun Mehta, founder of PaisaSmart, mentioned that while the videos had been blocked, neither his company nor its Sebi-registered parent had received any notice from the regulator regarding a potential violation of regulations.

“We received a notice from YouTube for videos that had been online for months. One fine day, they got blocked. We have always been compliant with all regulations; our Sebi registration numbers and all standard disclosures are prominently visible in the videos," he said. “If someone had manually reviewed my videos, they wouldn't have been blocked at all—they are fully compliant with all norms. I am purely educating investors by simplifying investments."

While Mehta acknowledged that Sebi’s intentions are aligned with tackling misleading financial advice, he criticized YouTube’s implementation, calling it arbitrary. “There is a rise in deepfakes that manipulate viewers. One major problem we’ve also faced is AI-generated content mimicking my father, Dipan Mehta (founder of Elixir), using our Sebi registration number to lure viewers into paid WhatsApp groups. Sebi regulations for WhatsApp channels are also lax. That space is rife with misinformation," he said.

Legal challenges

Legal experts believe YouTube’s intent is generally positive; however, the process remains poorly defined at this stage, resulting in some registered analysts also being affected. Experts recommend establishing a clearer redressal mechanism.

“YouTube’s decision to take down finfluencers’ content isn't inherently wrong, especially considering Sebi’s crackdown on unauthorized financial advice and misinformation. However, the platform’s approach is frustrating registered analysts and creators due to its opaque and heavy-handed methods," said senior securities lawyer Chirag M. Shah.

“To address this, YouTube needs a transparent and accessible grievance resolution mechanism. The platform should establish an independent ombudsman office to provide a clear channel for resolving disputes, ensuring transparency in decision-making, and consistency in enforcing community guidelines," he added.

Legal experts also noted that platforms like YouTube are intermediaries regulated under the Information Technology Act, which gives the government the authority to direct them to block content that threatens national security or public order or violates applicable laws.

On the rights of influencers whose videos are restricted without prior notice or the opportunity to respond, Ameet Datta, IP and media law partner at Saikrishna & Associates, explained that influencers have the right to challenge these decisions under the grievance redressal rules of the IT Rules 2021, or by taking the matter to court. However, he clarified that influencers do not have the right to a hearing before their content is taken down.

Datta also emphasized that the grievance redressal process, which allows users to challenge content restrictions, must be transparent and protect users’ rights. “Platforms like YouTube must ensure fairness in their takedown decisions, provide an avenue for appeals or reviews, and notify users before or after restricting content," he said.

While significant privacy and transparency concerns exist, particularly if content removal is based on undisclosed government complaints, Datta said takedown processes mandated by government notifications issued by authorized officers require compliance. Nevertheless, such removals can still be challenged in court.