The Securities and Exchange Board of India (SEBI) has removed more than 1.2 lakh misleading social media posts by unregistered financial influencers as part of a broader crackdown on digital market misconduct. The action comes amid growing concerns over unregulated investment advice being circulated widely across social media platforms.
As per SEBI, while individuals are free to share financial education content under the right to freedom of expression, offering investment advice requires SEBI registration. The regulator steps in only when influencers cross the line into misleading investors or making unsubstantiated profit claims. Once violations are detected, SEBI directs platforms to remove the content.
To strengthen oversight, SEBI has deployed an in-house artificial intelligence system named ‘Sudarshan’. The tool scans large volumes of audio, video, and text content across digital platforms to identify patterns of unregistered advisory activity and false claims.
The system enables faster detection of potential breaches of securities regulations, significantly improving digital surveillance capabilities. The AI framework is designed to proactively flag suspicious narratives rather than relying solely on complaints.
SEBI has also expressed concern over social media-driven narratives promoting easy profits in derivatives trading, particularly in options. Following a surge in retail participation after the pandemic, the regulator published data showing that a majority of small investors incurred losses.
To enhance investor awareness, SEBI introduced statutory risk warnings stating that nine out of 10 retail investors lose money in options trading.
SEBI’s removal of over 1.2 lakh misleading posts signals a decisive shift toward AI-driven regulatory enforcement in India’s capital markets. As digital financial content expands, the regulator appears determined to draw a firm boundary between education and unauthorized investment advice, aiming to protect retail investors from misinformation and speculative hype.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: Mar 2, 2026, 4:50 PM IST
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