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SEBI Flags Over 1.3 Lakh Social Media Posts by Fake Financial Advisors
SEBI Flags Over 1.3 Lakh Social Media Posts by Fake Financial Advisors
India's stock market regulator, the Securities and Exchange Board of India (SEBI), has flagged more than 1.33 lakh misleading social media posts related to the securities market. These posts were reported to social media platforms with requests to take them down. The Ministry of Finance shared this information in Parliament, confirming the numbers as of February 2026. The issue came up after two Members of Parliament, Vijay Vasanth and Suresh Kumar Shetka, raised questions about the growing problem of unregistered financial influencers - commonly called "finfluencers" - misleading common investors through social media.
Who are these finfluencers and why is this a problem?
Finfluencers are people who give stock tips, investment advice, or financial guidance on platforms like YouTube, Instagram, and Telegram. Many of them have no licence or registration with SEBI. They attract followers with promises of quick profits, viral stock tips, and market predictions. The problem is that ordinary investors, especially first-time ones, often trust these influencers without checking if they are actually qualified to give financial advice. This can lead to poor investment decisions and, in the worst cases, heavy financial losses. SEBI Chairman Tuhin Kanta Pandey had earlier stated that the regulator had removed more than 1.2 lakh such posts after finding that they clearly violated SEBI's rules. He made it clear that spreading general financial education is perfectly fine, but the moment someone starts misleading investors or making false claims, SEBI steps in quickly.
What is SEBI doing about it?
SEBI's main tool right now is coordination with social media platforms. When it spots content that breaks the rules, it flags it to the concerned platform - whether that is Meta, Google, or any other provider - and requests removal. The 1.33 lakh posts flagged so far show the sheer scale of this problem. To help investors tell real advisors from fake ones, SEBI now requires all registered entities and their agents to clearly display their name and SEBI registration number on their social media profiles and in every piece of content they put out. This makes it easier for an investor to do a quick check before trusting any advice. SEBI also regularly runs investor awareness campaigns to educate people about these risks and remind them to verify credentials before acting on any financial tip they see online.
No AI tools in use yet
One interesting detail that came out in Parliament is that SEBI is currently not using any artificial intelligence tools to detect or track misleading content. At a time when AI is being used widely across industries, this is a notable gap. Monitoring 1.33 lakh posts - and the many more that continue to appear every day - manually or through basic systems is a significant challenge.
What about investor losses and complaints?
MPs also asked whether any investors had suffered financial losses due to fake accounts impersonating real SEBI-registered advisors on social media. The government's response was straightforward - SEBI does not collect or maintain this data. So while the problem is clearly large in scale, there is no official record of how much money investors may have lost because of these fraudulent posts. For those who have complaints, SEBI's SCORES platform (Securities and Exchange Board of India Complaints Redress System) is the official channel to lodge and track grievances.
Why does this matter to ordinary investors?
The next time a social media account promises you a "sure shot" stock tip or guarantees returns of 30% in a month, it is worth pausing. Check whether that person is registered with SEBI. Look for their registration number. A registered advisor is accountable under the law. An unregistered one is not. SEBI's crackdown sends a clear message - the internet may be free and open, but financial advice is regulated territory. A viral video is not a substitute for verified expertise, and a thumbs-up on social media is not the same as due diligence. The fight against misleading finfluencers is far from over, but at 1.33 lakh flagged posts and counting, it is at least well and truly underway.