SEBI Flags 1.33 Lakh Misleading Social Media Posts on Securities

The Ministry of Finance has informed Parliament that the Securities and Exchange Board of India has escalated around 1.33 lakh misleading or manipulative social media contents related to securities to various social media platform providers. 

These cases were identified as of February 2026 and reflect growing concerns about the misuse of digital platforms to influence investors.

The disclosure was made in response to questions raised by Members of Parliament Vijay Vasanth and Suresh Kumar Shetka regarding the rising misuse of social media by unregistered financial influencers, commonly referred to as “finfluencers”.

Regulatory Steps to Protect Investors

According to the Ministry of Finance, SEBI has taken several regulatory measures to improve transparency and protect investors from misleading financial advice circulating online. 

One such step requires all SEBI-regulated entities and their agents to clearly display their registered name and registration number on their social media profiles and in all securities-related content.

This requirement allows investors to verify whether the source of investment advice is a registered entity and helps distinguish legitimate professionals from unregistered influencers spreading financial information.

Use of Technology and Monitoring

The ministry also clarified that SEBI is currently not using artificial intelligence tools to track misleading securities-related content across digital platforms. However, the regulator continues to coordinate with social media platform providers to address posts and videos that violate regulatory norms.

These efforts aim to reduce the risks associated with unregistered individuals providing investment advice without regulatory oversight.

Grievance Redressal Mechanism

To address investor complaints, SEBI operates an online grievance redressal system known as SCORES. This platform allows investors to lodge complaints, monitor their status, and follow up on issues related to the securities market.

The ministry added that SEBI does not currently maintain data on financial losses suffered by investors due to impersonation of registered entities on social media.

Also Read: SEBI Board Meeting Focuses on FPI Settlement Reforms, Governance Changes and Transparency Measures!

Conclusion

The escalation of over 1.33 lakh misleading posts highlights the growing challenge regulators face in monitoring digital investment advice. Through regulatory measures, coordination with social media platforms, and grievance mechanisms like SCORES, SEBI aims to strengthen investor protection and reduce the risks posed by unregistered financial influencers online.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.