The Securities and Exchange Board of India (SEBI) has removed more than 1.2 lakh misleading social media posts by unregistered financial influencers as it steps up digital surveillance using artificial intelligence tools, chairman Tuhin Kanta Pandey told ANI in an interview.
Speaking to news agency ANI, Pandey said the regulator had taken down “more than 120,000 such pieces of content” after identifying “egregious behaviour violating our norms.”
“Our rules say that if you have to give investment advice, you have to be registered with SEBI. And being registered means you have certain do’s and don’ts,” he told ANI.
Distinguishing between financial education and investment advice, Pandey said individuals are free to express their views online. “People have every right to express themselves and undertake financial education as part of their fundamental right to freedom of expression. Only when you transgress that line and actually mislead investors do we step in, seek removal, and have the content taken down,” he added.
AI-driven surveillance
To strengthen oversight in the digital ecosystem, SEBI has deployed an in-house artificial intelligence tool named ‘Sudarshan’. According to Pandey, the system helps the regulator scan large volumes of online content across formats.
“This tool helps us track audio, video and other content to pinpoint where transgressions occur,” he told ANI, adding that social media platforms have been cooperating when SEBI orders the removal of violative content.
The Sudarshan system enables the regulator to monitor patterns indicative of unregistered advisory activity and misleading claims, allowing faster identification of potential breaches of securities regulations, as per ANI.
Retail derivatives under scrutiny
Pandey also flagged the role of social media narratives in driving retail participation in derivatives trading, particularly after the COVID-19 pandemic.
Referring to options trading, he said many small investors were influenced by claims suggesting easy profits. “Possibly by misleading claims that there’s a lot of money to be made in these,” he told ANI.
SEBI responded by publishing data showing that retail investors collectively incurred substantial losses in the segment. The regulator also introduced statutory warnings, similar to those on cigarette packs, stating that nine out of 10 investors lose money while trading options.