India’s market regulator, the Securities and Exchange Board of India (SEBI), has intensified its campaign against digital financial fraud and misleading investment content circulating online. Under its flagship initiative “SEBI vs Scam,” the regulator has flagged and removed over one lakh misleading messages and posts from various social media platforms.
Speaking at CNBC-TV18’s Global Leadership Summit, SEBI Chairperson Tuhin Kanta Pandey said that the growing influence of unregulated financial influencers poses a serious threat to the integrity of financial markets and investor safety. A recent SEBI survey revealed that 62% of retail investors rely on influencer recommendations when making investment decisions — a trend that, Pandey noted, has made investor education more critical than ever before.
Investor Education and Digital Vigilance: Strengthening the Foundation
“Investor protection begins with investor education,” Pandey stated, emphasizing that misinformation now spreads faster than ever through digital channels. He warned that false promises of quick returns, fake trading apps, and cloned investment websites are not only misleading investors but also eroding trust in the financial ecosystem.
Under the “SEBI vs Scam” campaign, the regulator has adopted a multi-layered strategy focused on real-time surveillance, awareness, and technology-driven protection:
- 1. Advanced Digital Monitoring: SEBI has enhanced its tracking of social media platforms to identify and report misleading or fraudulent investment content. Platforms are being urged to act swiftly in removing deceptive material.
- 2. Nationwide Investor Awareness Drives: The regulator has launched public campaigns to educate people on how to detect and avoid fake investment schemes, cloned broker apps, and unregistered advisory entities.
- 3. New Verification Tools: To empower investors, SEBI has rolled out ‘Valid UPI’ and ‘SEBI Check’ — tools that allow individuals to verify whether a bank account or QR code belongs to a registered intermediary.
Pandey said these measures are designed to create an environment where investors can verify the authenticity of digital financial intermediaries before transacting.
“Cyber fraud today is highly sophisticated. The best protection for investors is access to transparent, verifiable information,” he said.
Policy Focus: Building a Safer Market Ecosystem
Pandey also announced that SEBI will soon form a working group to review short-selling practices and the Securities Lending and Borrowing Mechanism (SLBM). The goal, he said, is to further strengthen transparency, operational efficiency, and risk management within the Indian securities market.
Additionally, SEBI has directed stock exchanges to publish regularly updated whitelists of verified broker apps and platforms — a move aimed at helping investors identify legitimate digital investment interfaces.
He added that SEBI’s evolving role goes beyond regulation to ensuring digital accountability and investor empowerment.
“Our mission is not merely to enforce rules but to enable investors to make informed, confident decisions. ‘SEBI vs Scam’ is a major step in safeguarding public trust in India’s markets,” Pandey noted.
A New Era of Investor Protection
Experts view SEBI’s aggressive approach as a landmark shift in India’s regulatory mindset, reflecting the changing realities of a digital-first financial landscape. The proliferation of social media influencers and digital trading platforms has democratized investing, but it has also opened new channels for manipulation and fraud.
Through initiatives like “SEBI vs Scam,” the regulator aims to combine education, enforcement, and technology to curb misinformation and ensure investor safety. This campaign also marks a crucial effort to rebuild investor confidence amid the surge in digital trading activity and online financial promotions.
SEBI’s ongoing actions — from removing misleading content to deploying verification tools — represent a proactive approach to protecting retail investors from emerging digital risks. The initiative underlines the regulator’s commitment to making India’s financial markets not only more inclusive but also safer, transparent, and trustworthy.
