Unregistered Finfluencers under Radar of SEBI: 1.33 Lakh Misleading Social Media Posts Escalated for Takedown, says FM
SEBI has conducted investor education programs, reaching nearly 32 lakh participants across 724 districts to promote tools like the Saa₹thi mobile app and the "SEBI Check" verification portal.
The Ministry of Finance has informed the parliament that As of February 2024, SEBI has flagged over 1.33 lakh social media posts for takedown. These posts, often created by unregistered "finfluencers," were found to be misleading, manipulative, or flat-out illegal.
MP Vijayakumar Alias Vijay Vasanth and MP Suresh Kumar Shetkar sought reply from the Ministry with regards to the fake financial and investment advice floating in the social media platforms.
The finance ministry said that SEBI has started tightening the leash on how financial information is shared online. They now require any regulated advisor or firm to clearly display their official registration number and name on their social media profiles.
The viewers should check for the number and make sure that the influencer is registered or genuine.
“SEBI coordinates with Social Media Platform Providers (SMPPs) to mitigate risks arising from investment advice disseminated by unregistered “finfluencers” through posts and videos that are in violation of SEBI regulations” said the Ministry.
Investors are advised to report grievances through the SCORES (SEBI Complaints Redress System) platform. The ministry also informed that the exchange board is also collaborating with major tech platforms to develop preventive filters that block fraudulent advertisements before they reach the public.
SEBI has conducted investor education programs, reaching nearly 32 lakh participants across 724 districts to promote tools like the Saa₹thi mobile app and the "SEBI Check" verification portal, replied the Ministry.
With regards to the financial losses suffered due to impersonation of registered entities on social media platforms, the ministry said that they don’t possess such data. This shows that the ministry has to come up with an action where the full economic impact of digital financial fraud is measured.
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