The Government stated that the Securities and Exchange Board of India (SEBI) has identified significant misuse of social media platforms by unregistered financial influencers and has escalated over 1,33,000 instances of misleading or manipulative content to platform providers for removal as of February 28, 2026. To enhance transparency and investor protection, SEBI mandates regulated entities to prominently display their registration details on social media, enabling investors to verify authenticity. While SEBI actively monitors and coordinates with platforms using takedown mechanisms and API-based verification systems, it currently does not deploy AI-based surveillance tools. No consolidated data on investor losses due to impersonation is available; however, complaints are addressed through the SCORES grievance redressal system. SEBI has also undertaken extensive investor awareness initiatives, including nationwide programs, digital tools, and campaigns like “SEBI vs SCAM,” to educate investors and mitigate risks arising from fraudulent online investment advice.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 4912
TO BE ANSWERED ON MONDAY, MARCH 23, 2026/CHAITRA 02, 1948 (SAKA)
MISUSE OF SOCIAL MEDIA PLATFORM BY FINANCIAL INFLUENCERS
4912. Shri Vijayakumar Alias Vijay Vasanth:
Shri Suresh Kumar Shetkar:
Will the Minister of Finance be pleased to state:
a. whether the Government has assessed the rising misuse of social media platforms by unregistered financial influencers for misleading investors and if so, the number of complaints received and enforcement actions initiated in this regard;
b. whether mandatory display of Securities and Exchange Board of India (SEBI) registration numbers are likely to effectively curb fraudulent investment advice online and if so, the monitoring mechanism put in place and penalty framework prescribed thereof;
c. whether SEBI proposes real-time surveillance tools to track misleading securities-related content across digital platforms and if so, the details of the technological framework and implementation timeline thereof;
d. whether investors have suffered financial losses due to impersonation of registered entities on social media platforms and if so, the details thereof along with the compensation or grievance redressal mechanisms established;
e. whether the Government plans coordination with social media companies to remove unregistered investment promotion accounts and if so, the details of agreements or compliance protocols developed in this regard; and
f. whether SEBI has conducted awareness campaigns enabling investors to verify registration numbers before investing and if so, the details of such outreach and regional implementation?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Securities and Exchange Board of India (SEBI) receives inputs about misleading/manipulative/unlawful contents pertaining to the securities market and escalates such inputs to the social media platform provider(SMPP) concerned to remove/disable/take down the same in terms of the relevant regulatory framework.
SEBI has escalated 1,33,000 misleading/manipulative social media contents relating to securities market, as on February 28, 2026, to the concerned social media platform providers (SMPP).
(b): To enhance transparency, investor protection, and strengthen conduct of SEBI regulated entities, SEBI requires regulated entities and their agents to prominently display their registered name and registration number on social media profiles and in all securities-related content. This helps investors verify authenticity and distinguish them from unregistered entities.
(c): SEBI is currently not using any AI tools to track misleading securities-related content across digital platforms.
(d): No such data is available with SEBI. Further, with regard to the grievance redressal mechanisms of SEBI, all complaints received by SEBI pertaining to securities market are dealt through SCORES, which is an online platform that enables the investors to lodge and follow up their complaints and track the status of redressal of such complaints.
(e): 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. These actions are undertaken in accordance with the applicable regulatory framework, and appropriate enforcement measures are initiated where necessary. A brief outline of the steps taken by SEBI is provided below:
i. SEBI engages with SMPPs to develop proactive (preventive) mechanisms, in addition to reactive takedown processes, to curb the dissemination of violative content.
ii. SEBI actively monitors social media platforms for unlawful or manipulative securities-related content and escalates such instances to concerned platforms (e.g., Google, Meta, X, Telegram) for appropriate action, including removal, in line with regulatory requirements.
iii. SEBI has implemented an API-based system enabling platforms to verify that only registered intermediaries are permitted to publish securities-related advertisements, thereby enhancing transparency and reducing the risk of fraud.
iv. SEBI-regulated entities and their agents are required to prominently display their registration details on social media profiles and in relevant content, ensuring accountability and strengthening investor protection.
(f): Multiple initiatives and investor awareness campaigns are undertaken by SEBI:
i. In Financial Year 2024-25, SEBI, along with Association of Mutual Funds in India (AMFI) and Asset Management Companies (AMC), conducted investor awareness programs in 724 districts across 36 States and Union Territories, covering nearly 32 lakh investors.
ii. SEBI has also launched the Saa₹thi Mobile App, offering educational resources and investment information to protect investors.
iii. SEBI runs the “SEBI vs SCAM” Campaign, which generates an ongoing fraud awareness campaign via TV, print, radio, and social media in partnership with Market Infrastructure Institutions (MIIs).
iv. In addition to the above SEBI is also creating awareness about “@valid UPI handle” and “SEBI Check” tool which were launched to enhance investor protection by curbing fraudulent money collection by unregistered intermediaries.
