SEBI's AI-Powered Crackdown on Misleading Financial Influencers

The Securities and Exchange Board of India (SEBI) has intensively clamped down on misleading financial advice circulating on social media. SEBI Chairman Tuhin Kanta Pandey announced that over 120,000 deceptive posts by unregistered financial influencers have been eliminated, utilizing advanced artificial intelligence (AI) technologies for monitoring.

Pandey emphasized the regulatory mandate that only officially registered entities can dispense investment advice, ensuring adherence to specific protocols. He underscored the value of free expression and financial education but warned against crossing into the realm of misinformation, which prompts SEBI to act decisively.

To bolster its oversight, SEBI has deployed an in-house AI tool named 'Sudarshan' that actively scans multilingual content across audio and video platforms to detect violations. The regulator has also issued stark warnings about the risks of options trading, highlighting substantial losses faced by retail investors influenced by social media narratives.