
The Securities and Exchange Board of India (SEBI) has removed over 120,000 misleading social media posts from financial influencers, its chairperson, Tuhin Kanta Pandey, recently revealed. While emphasizing the regulator's respect for free speech in financial education, Pandey stated there is "zero tolerance" for misleading promotions.
SEBI mandates that anyone providing investment advice must be registered with the regulator. To enforce this, the watchdog utilizes its in-house AI tool, 'Sudarshan,' to identify violations.
Simultaneously, regulatory authorities are tightening market access. In February, the Reserve Bank of India (RBI) confirmed it would not relax new lending restrictions for retail brokers and proprietary traders. It requires 100% qualified collateral for capital market credit and has banned financing for proprietary trading.
The crackdown comes amid data showing significant retail losses. Indian retail traders lost approximately $34 billion in derivatives trading over the past four years, with 91% of futures and options investors incurring losses, prompting stricter risk controls.