SEBI Removes Over 1.2 Lakh Misleading Social Media Posts by Unregistered Financial Influencers

SEBI Removes Over 1.2 Lakh Misleading Social Media Posts

Key Figures:

• 1.2 lakh: Number of misleading social media posts removed by SEBI
• 120,000: Equivalent number of misleading social media posts removed by SEBI
• 9 out of 10: Proportion of investors who lose money when trading in options

Summary

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The Securities and Exchange Board of India (SEBI) has taken significant steps to combat misleading social media content by unregistered financial influencers. Under the leadership of Chairman Kanta Pandey, SEBI has removed more than 1.2 lakh misleading social media posts and is leveraging artificial intelligence (AI) tools to track violations in the digital space.

SEBI's Approach

SEBI has established clear guidelines for registered financial influencers, emphasizing the importance of transparency and accuracy in investment advice. While acknowledging the right to freedom of expression and financial education, SEBI draws a clear distinction between education and misleading advice. The authority has the authority to direct the removal of misleading content and has seen cooperation from social media platforms.

AI-Powered Surveillance

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SEBI has deployed an in-house AI tool called Sudarshan to strengthen surveillance and track audio, video, and other content to pinpoint transgressions. This tool has been instrumental in identifying and removing misleading content.

Retail Participation in Derivatives Markets

Chairman Kanta Pandey has flagged the influence of social media narratives on retail participation in derivatives markets, particularly options trading. SEBI has responded with data-backed measures and investor warnings, including a statutory warning stating that nine out of 10 investors lose money when trading in options.