Sebi to deploy AI tool to track misleading ads, finfluencer content

Sebi is deploying an AI tool, R(AI)DAR, to track misleading ads and finfluencer content, enhancing investor protection and monitoring social media for illegal financial promotions

The Securities and Exchange Board of India (Sebi) is developing an artificial intelligence-powered system to detect and review illegal or misleading advertisements and social media content.

 

The tool, called Regulatory AI-Driven Advertisement Reviewer — R(AI)DAR — is aimed at bolstering the market regulator’s monitoring of investor-facing communications, according to people familiar with the matter.  

 

In recent years, Sebi has steadily expanded its use of in-house AI tools to oversee trading activities, process initial public offering (IPO) documents, analyse market behaviour, and scrutinise investment advisors and research analysts.  

 

A day earlier, Sebi Chairman Tuhin Kanta Pandey said the regulator had flagged over 100,000 pieces of potentially misleading content to various social media platforms. Sebi has been working closely with companies such as Meta and Google to remove such content and advertisements, and to take action against certain financial influencers.  

 

Sources indicated that Sebi plans to showcase R(AI)DAR alongside its Sudarshan market surveillance tool at the ongoing Global Fintech Fest.  

 

An emailed query to Sebi remained unanswered at the time of publishing.  

 

In previous comments, Sebi officials have said that AI-enabled processes have helped speed up approvals for intermediaries such as mutual funds and allowed quicker IPO document scrutiny, with the systems flagging potential concerns more efficiently.