India’s securities regulator, SEBI, deploys advanced AI systems like Project SUDARSAN to detect and curb misleading social media finance content, signalling a major shift in investor protection efforts amid rising social media influence.
India’s market regulator is leaning more heavily on artificial intelligence as it tries to curb the rise of so-called finfluencers and the spread of misleading investment claims on social media. According to India Today, the Securities and Exchange Board of India has switched on Project SUDARSAN, a surveillance system built to detect unauthorised digital activity and flag material that could mislead investors. The move comes after the regulator’s latest investor survey found that 62% of investors are influenced by financial influencers, underlining how quickly social media has become part of the investment decision-making process.
Project SUDARSAN, short for Surveillance of Unauthorised Digital Activity via Real-time Scanner for Anti-fraud, is designed to go beyond simple keyword searches. India Today reported that the platform uses multimodal AI to assess spoken words, visuals and context, including material in regional languages, before assigning risk scores and generating alerts for possible enforcement action. Since it began operating in November 2025, the system has identified more than 20,000 instances of allegedly fraudulent posts and content, while also reducing the burden on manual monitoring teams.
The regulator’s concern is not limited to false promises of guaranteed returns. India Today said the system is also meant to catch fake certifications, impersonation of regulated entities and unregistered investment advice, all of which can make an unauthorised pitch look credible to retail investors. Tuhin Kanta Pandey, SEBI’s chairman, has separately said the regulator has already removed more than 1.2 lakh misleading posts from unregistered finfluencers, according to The Economic Times and Financial Express, signalling a wider cleanup of social media content rather than a single enforcement push.
SEBI is also trying to stop dubious promotions before they reach the public. India Today reported that the regulator has introduced an API-based framework with social media platforms so that securities-market advertisements can be run only by verified, SEBI-registered intermediaries. It has also deployed R(AI)DAR, another AI tool used to review advertisements and investor education material for compliance gaps, including missing disclaimers and products being dressed up as educational content.
The wider backdrop helps explain why the regulator is moving so aggressively. India Today said SEBI’s household survey covered more than 90,000 homes and found that 63% of Indian households know at least one securities product, but only 9.5% actually invest. It also found that 74% of non-investors cite product complexity and a lack of understanding, while 73% fear losses and 51% do not trust financial institutions. At the same time, 80% of respondents preferred short-form video and 69% social media as learning tools, making online creators an increasingly powerful gateway into investing.
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.
