Unregistered advisors a threat; 70k misleading posts removed: Narayan

Markets regulator Sebi, in consultation with social media platforms, has removed 70,000 misleading handles and posts since the implementation of the fin-influencer framework last year, said its whole-time member Ananth Narayan G on Friday.

Amid concerns over foreign portfolio investors selling equities, the Sebi's whole-time member said the overall flows are not as bad as one would imagine and stressed that they "remain invested" in India.

The unregistered investment advisors and research analysts are a "menace" who are cashing in on the rising interest in investments, he said.

"Since October 2024, Sebi has worked with social media companies to bring down over 70,000 misleading handles/posts," he said while addressing an event organised by registered investment advisors here.

He sought the advisors' help in ensuring compliance and mentioned the UPI 'Payright' handle to help identify Sebi-registered entities and the optional Centralised Fee Collection Mechanism as Sebi's efforts in the direction.

Narayan, a commercial banker-turned-regulator, also offered a nuanced take on the FPI outflows, stressing that the situation is not as bad, but added that we should not be complacent as India needs foreign savings.

"Notwithstanding recent trends, overall, FPI flows have not been as bad as one might perhaps imagine today," Narayan said.

As of February 2025, FPIs held Rs 62 lakh crore or over USD 700 billion of Indian equities, and about Rs 5.9 lakh crores or USD 68 billion in debt, he said.

The last five years have seen USD 54 billion of foreign flows into equity and debt, which is much higher than the USD 19 billion in the prior five years, he said.

The onus is on us, and we will need to deliver sustained growth, stable macros, and governance to keep their interest, he said.

"We are working with all stakeholders, including FPIs, to enhance their investment experience in our country," he added.

Lauding the surge in domestic flows, especially from the mutual funds, he said the supply of quality investment options is essential, and pointed out that in FY24, there was only Rs 2 lakh crore of equity issuances against flows of Rs 5 lakh crore by MFs and FPIs.

"Adequate supply of fresh paper, in line with the demand for such paper, spurring fresh businesses and economic activity, is crucial for sustained capital formation and stable markets," he said.