EXCLUSIVE | SEBI mulls major crackdown against fake Telegram channels, use AI tools in probe: Sources

Capital market regulator SEBI may soon launch a major crackdown against fake Telegram channels disseminating illicit market tips by certain entities proporting to be unregistered advisors, sources told Zee Business. Certain channels on the social media and instant messaging are suspected of providing unsolicited market recommendations to users, according to the sources. These channels are not only creating nuisance for the country's capital market but also learned to be duping investors of their hard-earned money, they said.

Any channels found to be engaging in misleading activities on the platform will attract strict action under the crackdown, they added.

SEBI is set to probe the matter after some users filed complaints about such illicit channels on the messaging service. It may use Artificial Intelligence (AI)-powered tools in the investigation, noted the sources.

Add Zee Business as a Preferred Source

SEBI's Action Plan | Major crackdown on the cards against illicit Telegram channels

The market regulator, said one of the sources, may sign a memorandum of understanding (MoU) with I4C, a Home Ministry initiative that fights cyber crime through coordinated law enforcement action.

14C along with the Department of Telecommunications (DoT) will provide data support in the planned action against miscreants.

Both 14C and DoT will supply information on blacklisted numbers and networks linked to suspected cyber-crime operators and fraudsters with SEBI.

Under this exercise, preemptive action may be taken to protect the interests of investors, said one of the sources.

Additionally, a team of investigators at SEBI will also establish direct contact with Telegram, terminating groups found to be engaging in fraudulent activities.

SEBI to eradicate cybercrime and financial fraud

Over the years, the capital market regulator has rolled out a number of awareness and outreach programmes to educate and protect investors against financial fraud, including insider trading, ponzi and pump-and-dump schemes, guaranteed return claims, unregistered entities, fake apps, finfluencers, deepfakes, impersonation of brokers and officials, market manipulation, unauthorised advisories and intermediary mis-selling.

Here are answers to frequently asked questions (FAQs) on the subject:

Which action SEBI planning?

According to sources, SEBI is mulling a major crackdown against fake Telegram channels sharing unauthorised stock tips.

How did the issue come to light?

SEBI began looking into it upon receiving user complaints about suspicious channels on Telegram.

Will SEBI use technology in the probe?

Yes. SEBI may deploy AI-powered tools to track and investigate such networks, said the sources.

What action will be taken against violators?

Channels found guilty may face strict regulatory action.

Why are these channels under scrutiny?

They allegedly provide misleading recommendations and are duping investors through unregistered advisory services.

Which agencies will support SEBI?

SEBI may partner with I4C and the DoT.

What role will these agencies play?

They will provide data on blacklisted numbers and fraud-linked networks.

What risks do such channels pose?

They expose investors to financial fraud, pump-and-dump schemes, and fake tips.

Will Telegram be involved?

SEBI may coordinate directly with Telegram to remove fraudulent groups.

How does this help investors?

The move aims to protect investors and improve market transparency.