SEBI to Deploy AI Tools for Tracking Misleading Ads and Finfluencer Content

The Securities and Exchange Board of India (SEBI) is developing an artificial intelligence-driven system to monitor and analyse misleading advertisements and social media content targeted at investors. 

The new tool, titled Regulatory AI-Driven Advertisement Reviewer, R(AI)DAR, will enhance SEBI’s ability to detect, review, and act against illegal or deceptive promotional material, according to people aware of the development.

AI to Strengthen Market Surveillance

R(AI)DAR is the latest addition to SEBI’s growing suite of AI-enabled technologies. Over the past few years, the market regulator has expanded its use of machine learning and automation to track trading behaviour, assess IPO filings, analyse market trends, and monitor investment advisors and research analysts.

The regulator’s increasing reliance on technology comes amid a surge in social media-based financial promotions, some of which have misled retail investors. On Monday, SEBI Chairman Tuhin Kanta Pandey said the regulator had flagged more than 100,000 instances of potentially misleading financial content across various online platforms.

SEBI is also working with major technology firms such as Meta and Google to remove such content and restrict accounts of non-compliant financial influencers.

Showcase at Global Fintech Fest

According to sources, SEBI intends to unveil R(AI)DAR at the Global Fintech Fest, alongside its existing Sudarshan market surveillance tool, which tracks real-time trading activity and anomalies in the securities market.

Read More: SEBI Penalises Former Brightcom Directors for Financial Oversight Failures!

Conclusion

With R(AI)DAR, SEBI aims to further integrate artificial intelligence into regulatory operations, reinforcing transparency and investor protection in India’s financial markets. The initiative reflects the regulator’s commitment to leveraging advanced technology to combat misinformation, safeguard investors, and strengthen the integrity of India’s digital financial ecosystem.

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