The Securities and Exchange Board of India (SEBI) has made significant strides in removing misleading content on social media, having taken down more than 70,000 posts and accounts since October 2024. This move is part of the regulator’s ongoing efforts to protect investors from fraudulent advice and misinformation, ensuring market integrity remains intact.
The Problem of Misleading Financial Advice Online
The rise of social media has given birth to a new wave of financial influencers, also known as “finfluencers.” While some provide valuable insights, others without the necessary qualifications spread misleading financial advice. These unregistered influencers often target inexperienced investors, which can lead to significant financial losses. SEBI’s recent crackdown aims to stop this trend by removing harmful content and ensuring that only certified financial experts can offer investment advice.
Collaboration with Social Media Giants
SEBI has been working closely with popular social media platforms like Facebook, Instagram, Telegram, and YouTube. The goal is to quickly spot and eliminate content that violates securities market regulations. According to SEBI, since July 2024, over 8,800 misleading posts have been flagged for legal action. This effort has resulted in the removal of numerous accounts that failed to comply with the necessary registration and disclosure requirements.
Introducing UPI ‘Payright’ Handle to Protect Investors
As part of its strategy to safeguard investors, SEBI has also introduced the concept of the UPI ‘Payright’ handle. This innovation aims to create a virtual community of registered investment entities. It will help ensure that investors only make payments to certified and regulated entities, thus minimizing the risk of fraud. The new handle will allow investors to confidently interact with financial services, knowing they are dealing with trustworthy advisors.
Promoting Self-Regulation in the Financial Sector
While SEBI is taking action against misleading content, it is also encouraging financial advisors and analysts to self-regulate. The regulator believes that those working directly in the market have a better understanding of its dynamics and should lead the charge in maintaining high standards of professionalism. By working together, SEBI hopes that registered professionals will help protect the public from scams and unqualified advice.
Empowering Investors through Education
In addition to regulatory measures, SEBI is focusing on educating investors. The goal is to help them recognize credible financial advice and avoid falling prey to misleading information. With more informed investors, the risk of falling victim to scams will decrease, ensuring a healthier investment environment.
Conclusion
SEBI’s recent efforts to remove over 70,000 misleading social media posts and accounts are a clear signal that the regulator is serious about protecting investors. By removing harmful content, working with social media platforms, and promoting self-regulation in the financial sector, SEBI is taking important steps to ensure a safe and transparent market for all.
