The Securities and Exchange Board of India (SEBI) has taken strict action against unregistered financial influencers (Fin-Influencers) spreading misleading investment advice on social media. Since October 2024, SEBI, in collaboration with social media platforms, has blocked over 70,000 misleading posts and accounts.

SEBI’s Action Against Unregistered Fin-Influencers

Last year, SEBI started working on a framework to regulate unregistered Fin-Influencers. On Friday, SEBI’s full-time member, Anant Narayan, confirmed that the crackdown had led to the removal of thousands of misleading accounts and posts.

According to him, unregistered investment advisors and research analysts are taking advantage of growing investor interest in the stock market. SEBI considers them a serious threat as they mislead investors for personal profit. These Fin-Influencers influence people’s financial decisions on social media without proper registration or authorization.

SEBI’s Efforts to Ensure Compliance

Anant Narayan urged registered financial advisors to help SEBI in ensuring compliance. He also mentioned the introduction of the UPI PayRight system and an alternative centralized fee collection system to help investors identify SEBI-registered advisors.

Foreign Portfolio Investors (FPI) and Market Stability

Narayan also addressed concerns about Foreign Portfolio Investors (FPI) withdrawing investments from India. He stated that while the situation is not too bad, India still needs foreign savings.

As of February 2025, FPIs held ₹62 lakh crore ($700 billion) in Indian stocks and ₹5.9 lakh crore ($68 billion) in debt investments. Over the last five years, foreign inflows in stocks and debt reached $54 billion, which is significantly higher than the $19 billion recorded in the previous five years.

Narayan emphasized that to maintain foreign investor interest, India must ensure continuous economic growth, macroeconomic stability, and a healthy business environment.