SEBI Flags 1 Lakh Misleading Social Media Posts, Warns of Risks from Unregulated Finfluencers
Market regulator intensifies crackdown on fake apps, clone websites, and finfluencers as Sebi chief Tuhin Kanta Pandey highlights investor protection and transparency reforms.
Mumbai, Nov 7: The Securities and Exchange Board of India (SEBI) has flagged over one lakh social media posts for spreading misleading investment content, as the regulator steps up efforts to curb the growing influence of unregulated financial influencers.
Speaking at the CNBC-TV18 Global Leadership Summit 2025, SEBI Chairperson Tuhin Kanta Pandey said, “Investor protection begins with investor education. We face the onslaught of fake apps, clone websites, unrealistic performance claims, and unregistered entities misleading investors. Unregulated influencers pose a direct risk, with 62% of investors making decisions based on their recommendations.”
Pandey added that SEBI is working closely with social media platforms to take down misleading content and strengthen the monitoring system for digital financial communication.
Investor Protection and Market Strength
Highlighting SEBI’s dual role as a “guardian of trust” and a “facilitator of capital formation,” Pandey noted that India’s primary market remains strong, with ₹2 lakh crore raised from public issues this year. He emphasized that reforms will continue to streamline capital raising and make markets more transparent and inclusive.
“India’s domestic capital base is a deep well waiting to be deployed,” Pandey said, referring to the country’s expanding pool of household savings and institutional investors driving market momentum.
Weekly F&O Expiry and Derivatives Framework
On derivatives trading, Pandey said SEBI will soon introduce an options framework aligned with global standards but customized for Indian markets. He added that the weekly F&O expiry system is performing effectively, ensuring stability and certainty for market participants.
Short Selling, SLBM, and Buyback Review
Acknowledging the underdeveloped Securities Lending and Borrowing Mechanism (SLBM) in India, Pandey said SEBI will conduct a comprehensive review of short selling and SLBM frameworks to align them with international best practices.
The regulator also plans to revisit buyback norms to enhance transparency and boost investor confidence.
Mutual Fund Costs and Corporate Governance
On mutual fund total expense ratio (TER) caps, Pandey stated, “The cap is a ceiling we are examining whether it is too low. Transparency in costs remains non-negotiable.”
He reaffirmed SEBI’s commitment to maintaining an “optimum regulation” approach neither too restrictive nor too lenient ensuring India’s markets are future-ready.
Pandey also revealed that SEBI will soon review the Listing Obligations and Disclosure Requirements (LODR) framework to strengthen corporate governance and disclosure norms for listed companies.
