SEBI flags 1 lakh social media posts for misleading content, says unregulated influencers pose direct risk

Calling unregulated influencers a direct threat to investors, Sebi chief Tuhin Kanta Pandey said on Friday that the market regulator has flagged over 1 lakh social media posts to remove misleading content.

“Investor protection starts with investor education. We face an onslaught of fake apps, clone websites, unrealistic performance claims and unregistered entities that mislead investors. Unregulated influencers pose a direct risk to investors, as 62% make investment decisions based on their recommendations, as SEBI’s survey CN8-BC said. 2025.

He said that SEBI is actively monitoring social media for misleading content, and steps have been taken to remove over 1 lakh such items from social platforms.

“Potential investors are deterred by risk aversion, perceived complexity and lack of trust. Secondly, there is an opportunity to bring new investors into the fold,” he said, highlighting Sebi’s role as a facilitator of capital formation and not just a custodian of trust.

Pandey underlined that the health of India’s primary market remains strong, with public issues this year of Rs. 2 lakh crore has been collected. “We will continue to streamline the capital raising process,” he said, adding that the regulator’s ongoing reforms are aimed at making India’s markets faster, more transparent and more inclusive.

He described India’s domestic capital base as a “deep well waiting to be tapped”, reflecting the growing strength of household savings and domestic institutional participation in driving market momentum.

Weekly F&O Closing

The Sebi chief said the regulator will soon finalize an option framework, which is aligned with global norms but remains “tailored to India’s needs”.

“Derivatives play an important role in price discovery,” Pandey said, adding that Sebi’s approach to futures and options (F&O) will be “calibrated and data-driven”. A discussion paper outlining this approach is expected shortly.

Pandey also confirmed that the weekly F&O is working well, providing certainty to market participants.

Short sales, SLBMs and buybacks are under review

Pandey acknowledged that India’s securities lending and borrowing mechanism (SLBM) is underdeveloped compared to other jurisdictions. To address this, SEBI will conduct a comprehensive review of the short selling and SLBM framework.

He also said that the regulator will examine the norms of buybacks to increase transparency and investor confidence.

MF TER

On regulatory spending and caps, Pandey struck a balanced tone: “A cap is a cap, it’s a ceiling. We are debating whether the ceiling is too low. Transparency in spending remains non-negotiable.”

He reiterated that SEBI’s regulatory stance is one of ‘optimum regulation’, neither too tight nor too loose, designed to make India’s markets ‘future ready’.

Pandey also pointed to the need to deepen India’s bond market, saying that while many steps have been taken, “much remains to be done.”

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He added that SEBI will soon undertake a review of the Listing Obligations and Disclosure Requirements (LODR) framework, the key regulation governing listed companies, to strengthen corporate governance and transparency.