Sebi Taps AI to Purge 120,000 Misleading Finfluencer Posts

The Securities and Exchange Board of India (Sebi) has taken down more than 120,000 misleading social media posts by unregistered financial influencers as part of a stepped-up digital surveillance drive, Chairman Tuhin Kanta Pandey said.

Pandey told news agency ANI that Sebi has deployed an in-house artificial intelligence (AI) tool, dubbed Sudarshan, to scan audio, video and text content across platforms to pinpoint violations of investment advisory norms.

The regulator directs social platforms to remove content that crosses the line from general financial education into unregistered advice or exaggerated earning claims.

Sebi regulations require individuals offering investment advice to be registered with the market regulator and adhere to prescribed standards.

Pandey drew a distinction between financial education and investment advice, saying freedom of expression is respected but misleading posts that could harm investors will be taken down.

The crackdown reflects growing concern over retail investor influence by online narratives, particularly in derivatives trading.

Sebi has published data showing a majority of retail options traders incur losses and introduced a statutory risk warning that “9 out of 10 investors lose money” in options to reinforce caution.

Pandey described Sebi’s approach as calibrated rather than heavy-handed, calling the past year “a year of reform” as the regulator balances enforcement with market development.