Sebi’s Crackdown on Misinformation and Finfluencers

Misinformation Control

• Since October 2024, over 70,000 misleading online posts and accounts have been removed.
• Sebi worked closely with social media platforms to curb deceptive financial content.

Key Regulatory Focus

• Strong crackdown on unregistered investment advisors and research analysts.
• Addressing the growing concern of finfluencers and unauthorized stock recommendations.

New Initiatives

• Proposal to introduce a UPI ‘Payright’ handle to help investors easily identify registered financial entities and avoid fraud.
• Plans for a nationwide survey to help shape Sebi’s investor outreach strategy.
• Aim to use the accredited investor model to focus on risk-aware and capable investors.

Collaborative Approach

• Call for ongoing dialogue between Sebi and stakeholders to address overlaps between:
  • Investment advisors
  • Non-discretionary portfolio management services (PMS)
  • Mutual fund distributors
  • Incidental advisory services
• Encouragement for ARIA (Association of Registered Investment Advisors) to evolve into a quasi self-regulatory organisation.

Foreign Portfolio Investment (FPI)

• Emphasis on attracting and sustaining FPI flows.
• Noted higher FPI debt flows compared to equity, following India’s inclusion in global debt indices.
• As of February 2025:
  • FPI holdings: ₹62 trillion in equity and ₹5.9 trillion in debt.

Market Development

• Highlighted the need for an adequate supply of new securities to meet investor demand and support stable capital formation.
• Focus on maintaining stable macroeconomic conditions and good governance to sustain growth.