India’s markets regulator SEBI is leveraging advanced AI tools to monitor social media for false investment claims, targeting finfluencers and unauthorised trading apps amid rising investor influence and market risks.
India’s markets watchdog said it is turning to artificial intelligence to curb misleading investment content online as it steps up scrutiny of so-called finfluencers and unauthorised trading apps.
In its annual report for fiscal 2026, Securities and Exchange Board of India chair Tuhin Kanta Pandey said the regulator has widened its supervisory technology through Project Sudarsan, which scans social media for unsolicited financial advice, and SEBI R(AI)DAR, a system used to review advertisements. According to the report, these tools are designed to flag unverified claims and unauthorised digital activity that could mislead investors. The Economic Times reported that SEBI has already taken down more than 1.2 lakh misleading posts from unregistered influencers.
Pandey said the problem has grown more urgent because SEBI’s latest survey found 62% of investors are influenced by finfluencers, many of whom do not provide verified performance data or any real accountability. To address that gap, he said the regulator has launched PaRRVA, a performance claims verification agency intended to provide an independent digital audit of statements made by intermediaries. MediaNama also reported that SEBI has teamed up with Google Play on a verified app label for stock-trading platforms, giving investors a clearer sign that an app is registered with the regulator.
The annual report also said SEBI is keeping a close watch on market abuse, including insider trading, front-running, pump-and-dump schemes and corporate fraud. On derivatives, Pandey said the regulator has taken a more cautious approach, trimming expiry-day concentration, rationalising weekly index options and tightening intraday position-limit monitoring. SEBI said the aim is to preserve the usefulness of derivatives for hedging and price discovery while reducing risks to market stability.
Looking ahead, the regulator said it wants to simplify compliance, deepen the cash equities market, overhaul securities lending and borrowing and strengthen commodity markets. It also plans a fast-track route for alternative investment fund schemes, a single-window clearance system for intermediaries linked to multiple market institutions, a SEBI Setu portal and a pilot project for tokenising corporate bonds using distributed ledger technology. The report said SEBI is also preparing its cyber security defences for quantum-era threats.
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