India’s markets regulator warns investors to be wary of live trading tips on social media, amid rising scams and unregistered influencers offering misleading advice and triggering regulatory crackdowns.
India’s markets regulator has warned investors to be wary of real-time trading advice offered in live social media sessions, saying such content can be misleading and may come from unregistered individuals presenting themselves as market specialists. According to Business Today, the Securities and Exchange Board of India said some creators are sharing live trades, entry and exit points, price patterns and target levels while encouraging viewers to follow their strategies.
The warning builds on earlier steps taken by SEBI in May, when it restricted the use of recent market prices in investor education content. NDTV reported that the regulator has told financial influencers, or “finfluencers”, that educational material should rely on prices at least three months old rather than live market data. The aim is to reduce the risk that supposedly educational videos end up functioning as de facto trading tips.
SEBI’s latest caution comes amid a broader clampdown on online stock-picking schemes. LiveMint reported that the regulator recently uncovered a manipulation case involving seven unregistered finfluencers who allegedly helped generate more than ₹20 crore in unlawful gains, while Business Standard has also described a rise in scams spread through WhatsApp groups, unsolicited messages and other social channels promising easy returns.
The regulator has urged investors to check credentials carefully and deal only with SEBI-registered intermediaries. It has also warned against relying on virtual trading apps, fantasy-style stock games and other platforms that present price-based advice without proper authorisation. The common thread across the warning is clear: social media can make speculation look like expertise, but regulators say investors should treat live online tips with caution and verify the source before acting.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
