SEBI removes 6,000-7,000 misleading social media posts a month, acts against unlicensed finfluencers

SEBI chairman Tuhin Kanta Pandey has said the regulator is taking down about 6,000 to 7,000 misleading posts from social media every month.

Speaking at an event, Pandey addressed several key issues. He launched his 'Project Jagrat', which aims to raise awareness among investors so that they can avoid fraud.

Pandey said several influencers are running "pump and dump" scams in collusion with promoters, in which a share price is deliberately pushed up and the shares are then sold. SEBI is keeping a constant watch on such people.

According to the SEBI chief, the real trouble begins when these financial advisers overstep their limits. Firmly advising people to buy a particular stock or adopt a particular investment strategy without a licence or regulatory registration is highly irresponsible, he said, and can cause investors heavy losses. Pandey said this is entirely wrong and that SEBI has the power to take strict action against such people.

Pandey said there are three main types of fin-influencers. The first are those registered with SEBI who work within the rules. The second are those who are not registered but only share their opinions or information. The third are those who break the rules and give tips without a licence and without evidence.

SEBI is acting against this third type. The action is not limited to removing their content. On the basis of evidence, the profits they made illegally are also being seized. In many cases SEBI is also barring such people from the securities market.

Advising new and young investors, the SEBI chairman said investing is fairly easy once you understand the concepts, but putting money blindly into any share without understanding anything is entirely the wrong approach. "Our message to everyone is this: learn first, then invest," he said.