SEBI cracks down on misleading social media content, removes 70,000 posts

The Securities and Exchange Board of India (SEBI) on Friday said it has taken strict action against misleading content on social media, removing over 70,000 posts and accounts since October 2024.

This move is part of the SEBI's ongoing efforts to tackle misinformation and regulate online financial influencers.

The market regulator has been working closely with social media platforms to ensure such content does not mislead investors.

SEBI whole-time member Ananth Narayan highlighted these efforts while speaking at the Association of Registered Investment Advisors (ARIA) summit here.

"A common worry for all of us is the menace of unregistered investment advisors/research analysts who are cashing in on the rising interest in investments," he said.

He added that the SEBI's proposal to use the UPI 'Payright' handle will enable investors to easily identify registered entities and protect them from fraudsters.

"The increasing interest in investments has also led to a rise in unregistered investment advisors and research analysts who misguide investors," Narayan said.

To tackle this, the market regulator has introduced the UPI 'Payright' handle, which will help investors identify registered entities and avoid fraud.

Narayan also announced that the SEBI is planning a nationwide survey to better understand investor behaviour and improve its outreach strategies.

He emphasised the importance of continuous discussions between the SEBI and various market participants to streamline the roles of investment advisors, mutual fund distributors, and portfolio managers.

On the foreign investment front, Narayan noted that "the recent increase in foreign portfolio investor (FPI) debt inflows, driven by India's inclusion in global debt indices, has improved the investment mix".

He added that for a developing country like India, attracting such investments is a positive sign, but it also means the country must maintain strong economic growth, financial stability, and governance.

"The recent trend of higher FPI debt flows than equity (on the back of India's inclusion into global debt indices) has perhaps helped improve the portfolio mix a little bit. For a growing country like ours, this is not a bad outcome. Of course, it puts the onus on us to continue to deliver on sustained growth, stable macros and governance," he further stated.

Meanwhile, the SEBI board is set to hold its first meeting under new chief Tuhin Kanta Pandey on March 24. Key topics on the agenda include easing disclosure requirements by increasing the threshold limit.

The market regulator may also introduce a settlement scheme for algorithmic brokers and consider extending the fee collection period for research analysts.