India’s securities regulator has issued a fresh warning about the dangers of real-time trading advice on social media, highlighting the potential for rash decisions and significant losses among retail traders amid increased regulatory scrutiny.
India’s markets regulator has renewed its warning about live trading tips on social media, saying investors who follow real-time stock calls from influencers risk taking rash decisions that can lead to heavy losses. The Securities and Exchange Board of India, or SEBI, said these online sessions often blur the line between education and advice, particularly when hosts present live charts, trade levels and entry or exit points during market hours.
According to SEBI, some creators portray themselves as experts, narrate their own trades as they happen and encourage viewers to act immediately. The agency said the format can attract large audiences and spark live chat discussions in which unregistered advisory services are exchanged, making it harder for retail investors to tell the difference between genuine education and market promotion.
The caution comes against a difficult backdrop for Indian retail traders, especially in futures and options, where losses have remained large even as participation has eased. Indian media reports have said traders lost about ₹91,685 crore in FY26, while the number of people trading derivatives has fallen by roughly 20%. That suggests the problem is not just the size of the market, but the willingness of remaining participants to take concentrated, high-risk bets.
SEBI has been stepping up pressure on the wider ecosystem around social media market commentary. In January 2025, it barred financial influencers from using live stock prices in educational content and required them to rely on data at least three months old. The regulator had already warned in 2024 about social media scams that falsely promised access to the market through bogus foreign portfolio investor channels, as well as unauthorised virtual trading and gaming platforms that mimicked securities activity.
For investors trying to judge whether advice is risky, SEBI says the key question is whether the person offering it is registered and authorised to do so. Promises of guaranteed returns, “sure-shot” calls, instant profits or pressure to act quickly should be treated as warning signs. The safest approach, the regulator argues, is to verify registration details directly and rely on SEBI-registered intermediaries rather than trading on the basis of social media hype.
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.
