The Securities and Exchange Board of India has identified and flagged 8,890 instances of unlawful or misleading content related to securities markets on social media for legal action, Pankaj Chaudhary, minister of state for finance, said in reply to a parliamentary query.
The move comes amid rising concerns over entities masquerading as SEBI-registered market intermediaries and attempting to deceive investors through social media platforms and apps, he said.
In recent months, the markets regulator has received multiple complaints about individuals fraudulently posing as registered market intermediaries. These impostors have been soliciting funds for securities purchases from unsuspecting investors, exploiting the anonymity of social media to perpetrate their schemes.
In response, a joint press release issued in March 2024 by recognised stock exchanges urged investors to transact only through verified stockbrokers. Investors were also advised to verify stockbrokers and their bank accounts via official exchange websites to avoid falling victim to these scams. Stockbrokers have been instructed to report any cases of impersonation to the police, issue public notices in major newspapers, and inform their clients, the statement added.
"As of July 17, 2024, SEBI has informed 8,890 unlawful/misleading social media content relating to securities market to the concerned social media platform providers for legal action," Chaudhary mentioned.
The regulator, in collaboration with stock exchanges and depositories, has been intensifying its investor education and awareness programs, he said.
SEBI Chairperson Madhabi Puri Buch had also announced at a National Stock Exchange event on the same day that the regulator is poised to introduce new regulations for financial influencers.
Throughout the fiscal 2024, SEBI and its regulated entities conducted 43,826 investor awareness programs across 687 districts, reaching over 27.93 lakh participants. These programs, offered free of charge, focus on educating investors about common features of investment scams, warning against unsolicited investment schemes, and advising on how to identify and avoid unregistered intermediaries and fake entities, the statement highlighted.
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