In a recent Lok Sabha discussion, Minister of State for Finance Pankaj Chaudhary highlighted concerns about financial influencers misusing social media, addressing monitoring strategies, investor losses, and awareness initiatives. SEBI disclosed it lacks data on investor losses due to impersonation of registered entities on social platforms. As of February 28, 2026, SEBI escalated 133,000 misleading posts to platforms like Google, Meta, and Telegram. To combat misinformation, SEBI requires regulated entities to display registration details and has proposed AI and ML tools for better monitoring in its 2024 consultation. However, experts caution that AI may struggle to differentiate between educational advice and misleading content. The response points to a gap in SEBI’s current enforcement against online financial misinformation, raising concerns about the efficacy of existing mechanisms. As the influence of finfluencers grows, the absence of automated tools may jeopardize the detection and response to emerging financial risks.
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