SEBI Takes Firm Action Against Deceptive Social Media Posts, Deletes 70,000 Accounts
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Synopsis
On March 21, SEBI reported the removal of over 70,000 misleading social media posts and accounts since October 2024. This initiative aims to combat misinformation and regulate financial influencers, ensuring investor protection.
Key Takeaways
- SEBI removed over 70,000 misleading posts.
- Collaboration with social media platforms to combat fraud.
- Implementation of UPI ‘Payright’ handle for investor protection.
- Survey to understand investor behavior planned.
- Focus on ongoing dialogue with market participants.
Mumbai, March 21 (NationPress) The Securities and Exchange Board of India (SEBI) announced on Friday that it has enforced stringent measures against misleading social media content, eliminating more than 70,000 posts and accounts since October 2024.
This initiative is part of SEBI's persistent efforts to combat misinformation and regulate online financial influencers.
The market regulator has been collaborating closely with various social media platforms to prevent such content from deceiving investors.
SEBI's whole-time member Ananth Narayan underscored these initiatives while addressing the Association of Registered Investment Advisors (ARIA) summit.
"A prevalent concern for all is the threat posed by unregistered investment advisors and research analysts who exploit the growing interest in investments," he stated.
He further mentioned that SEBI's proposal to implement the UPI ‘Payright’ handle will assist investors in easily recognizing registered entities and shielding them from fraudsters.
"The surge in investment interest has consequently led to an influx of unregistered investment advisors and analysts who mislead investors," Narayan remarked.
To address this issue, the market regulator has rolled out the UPI ‘Payright’ handle, which will aid investors in identifying legitimate entities and preventing fraud.
Narayan also disclosed that SEBI plans to conduct a nationwide survey to gain insights into investor behavior and enhance its outreach strategies.
He stressed the necessity for ongoing dialogues between SEBI and various market participants to clarify the roles of investment advisors, mutual fund distributors, and portfolio managers.
Regarding foreign investments, Narayan noted that "the recent upsurge in foreign portfolio investor (FPI) debt inflows, spurred by India’s inclusion in global debt indices, has enriched the investment mix".
He added that for a developing nation like India, attracting such investments is a favorable sign, but it also necessitates maintaining robust economic growth, financial stability, and governance.
"The recent pattern of greater FPI debt flows compared to equity (due to India’s inclusion in global debt indices) has somewhat improved the portfolio mix. For a growing nation like ours, this is a positive development. However, it obliges us to continue delivering on sustained growth, stable macros, and governance," he further elaborated.
Meanwhile, the SEBI board is scheduled to conduct its inaugural meeting under new chief Tuhin Kanta Pandey on March 24. Key topics on the agenda include simplifying disclosure requirements by raising the threshold limit.
The market regulator may also propose a settlement scheme for algorithmic brokers and deliberate on extending the fee collection period for research analysts.
