The Securities and Exchange Board of India (SEBI) has taken significant action against misleading financial advice by removing over 120,000 social media posts from unregistered influencers. Utilizing an AI tool named ‘Sudarshan,’ SEBI can effectively track violations in various languages across digital platforms. SEBI Chairman Tuhin Kanta Pandey emphasized that only registered entities are authorized to provide investment advice, distinguishing between genuine financial education and misleading content. He highlighted the rising influence of social media on retail participation in derivatives markets, particularly post-COVID-19, where many investors fell prey to unrealistic claims of easy profits. In response, SEBI has issued warnings about the risks of options trading. Pandey underlined the importance of market regulation as a balanced approach and encouraged investors to conduct personal due diligence. SEBI’s cooperation with social media platforms aims to ensure a safer investment environment, maintaining regulatory integrity in the financial ecosystem.
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