Sebi flags 100k misleading social media posts amid investor scams

Sebi identified over 100,000 unlawful social media posts in 18 months, unveiling new tools to curb scams and boost investor awareness across India

The Securities and Exchange Board of India (Sebi) has flagged over 100,000 unlawful or misleading content pieces on social media platforms over the past 18 months, Chairman Tuhin Kanta Pandey said on Monday.

 

The Sebi chief was speaking at the launch of World Investor Week 2025 at the National Stock Exchange (NSE).

 

As part of its ongoing drive to promote investor awareness and curb fraud, Sebi has rolled out several new measures, including validated UPI handles for payments to registered intermediaries and a ‘Sebi Check’ verification tool.

 

The regulator is also setting up local offices in state capitals and major cities to strengthen its outreach and monitor unregulated market activities.

 

Pandey cautioned investors against fraudsters who target cautious savers with high-risk schemes disguised as safe investments.

 

“While digital infrastructure has brought the markets to our fingertips, it has also armed fraudsters with new tools to deceive investors. Unsolicited messages on messaging applications, dubious ‘finfluencers, and fake trading apps/websites promise the one thing that our markets can never offer - guaranteed returns,” said Pandey.

 

He also highlighted India’s low market participation rates, noting that only about 15 per cent of urban and 6 per cent of rural populations currently engage in the markets.

 

Pandey urged investors to clarify their financial goals — whether to build long-term wealth or engage in speculative, short-term trading — especially since studies have repeatedly shown retail losses in the derivatives segment.

 

“Derivatives are meant for hedging and risk management, not for quick gains. Retail investors should therefore assess their risk capacity, learn how these contracts work, and avoid speculative trades,” said Pandey.

 

The NSE, meanwhile, announced a range of investor awareness initiatives, including quizzes, education sessions across 40 locations, and interactive finance games aimed at helping investors spot scams.

 

Addressing the public for the first time since taking over as NSE chairman, Srinivas Injeti confirmed that the long-awaited initial public offering (IPO) of the exchange remains on schedule.

 

“We are very much on the track. One of the motivations for NSE to go public is to exemplify that it stands for what it expects from a listed company. It will lead by example. It is a widely held company even though it is not listed — with close to 180,000 shareholders,” said Injeti.