Lok Sabha Question No. 4912 (UNSTARRED), answered on 2026-03-23
Subject: Misuse of Social Media Platform by Financial Influencers
Ministry: FINANCE
Asked by: Shri Suresh Kumar Shetkar, Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 4912 TO BE ANSWERED ON MONDAY, MARCH 23, 2026/CHAITRA 02, 1948 (SAKA)

## MISUSE OF SOCIAL MEDIA PLATFORM BY FINANCIAL INFLUENCERS

## 4912. Shri Vijayakumar Alias Vijay Vasanth: Shri Suresh Kumar Shetkar:

Will the Minister of Finance be pleased to state:

(a)  whether  the  Government  has  assessed  the  rising  misuse  of  social  media  platforms  by unregistered financial influencers for misleading investors and if so, the number of complaints received and enforcement actions initiated in this regard;

(b) whether mandatory display of Securities and Exchange Board of India (SEBI) registration numbers  are  likely  to  effectively  curb  fraudulent  investment  advice  online  and  if  so,  the monitoring mechanism put in place and penalty framework prescribed thereof;

(c)  whether  SEBI  proposes  real-time  surveillance  tools  to  track  misleading  securities-related content  across  digital  platforms  and  if  so,  the  details  of  the  technological  framework  and implementation timeline thereof;

(d) whether investors have suffered financial losses due to impersonation of registered entities on social media platforms and if so, the details thereof along with the compensation or grievance redressal mechanisms established;

(e)  whether  the  Government  plans  coordination  with  social  media  companies  to  remove unregistered investment promotion accounts and if so, the details of agreements or compliance protocols developed in this regard; and

(f) whether SEBI has conducted awareness campaigns enabling investors to verify registration numbers before investing and if so, the details of such outreach and regional implementation?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a): Securities and Exchange Board of India (SEBI) receives inputs about misleading/manipulative/unlawful contents pertaining to the securities market and escalates such inputs to the social media platform provider(SMPP) concerned to remove/disable/take down the same in terms of the relevant regulatory framework.

SEBI has escalated 1,33,000 misleading/manipulative social media contents relating to securities market, as on February 28, 2026, to the concerned social media platform providers (SMPP).

(b):  To  enhance  transparency,  investor protection,  and strengthen  conduct  of SEBI  regulated entities, SEBI requires regulated entities and their agents to prominently display their registered name and registration number on social media profiles and in all securities-related content. This helps investors verify authenticity and distinguish them from unregistered entities.

(c): SEBI is currently not using any AI tools to track misleading securities-related content across digital platforms.

(d):  No  such  data  is  available  with  SEBI.  Further,  with  regard  to  the grievance  redressal mechanisms of SEBI, all complaints received by SEBI pertaining to securities market are dealt through SCORES, which is an online platform that enables the investors to lodge and follow up their complaints and track the status of redressal of such complaints.

(e): SEBI coordinates with Social Media Platform Providers (SMPPs) to mitigate risks arising from investment advice disseminated by unregistered 'finfluencers' through posts and videos that are in violation of SEBI regulations. These actions are undertaken in accordance with the applicable regulatory framework, and appropriate enforcement measures are initiated where necessary. A brief outline of the steps taken by SEBI is provided below:

- i. SEBI engages with SMPPs to develop proactive (preventive) mechanisms, in addition to reactive takedown processes, to curb the dissemination of violative content.
- ii. SEBI actively monitors social media platforms for unlawful or manipulative securitiesrelated content and escalates such instances to concerned platforms (e.g., Google, Meta,
3. X,  Telegram)  for  appropriate  action,  including  removal,  in  line  with  regulatory requirements.
- iii. SEBI has implemented an API-based system enabling platforms to verify that only registered  intermediaries  are  permitted  to  publish  securities-related  advertisements, thereby enhancing transparency and reducing the risk of fraud.

iv.  SEBI-regulated  entities  and  their  agents  are  required  to  prominently  display  their registration details on social media profiles and in relevant content, ensuring accountability and strengthening investor protection.

- (f): Multiple initiatives and investor awareness campaigns are undertaken by SEBI:
- i.In  Financial  Year  2024-25,  SEBI,  along  with  Association  of  Mutual  Funds  in  India (AMFI)  and  Asset  Management  Companies  (AMC),  conducted  investor  awareness programs in 724 districts across 36 States and Union Territories, covering nearly 32 lakh investors.
- ii.SEBI has also launched the Saa₹thi Mobile App, offering educational resources and investment information to protect investors.
- iii. SEBI  runs  the  'SEBI  vs  SCAM'  Campaign,  which  generates  an  ongoing  fraud awareness campaign via TV, print, radio, and social media in partnership with Market Infrastructure Institutions (MIIs).
- iv.In addition to the above SEBI is also creating awareness about '@valid UPI handle" and 'SEBI Check' tool which were launched to enhance investor protection by curbing fraudulent money collection by unregistered intermediaries