Regulator Intensifies Efforts Against Misinformation. |
Mumbai: The Securities and Exchange Board of India (SEBI) has taken decisive action against misleading financial content on social media, removing over 70,000 posts and accounts since October 2024. This crackdown is part of SEBI’s broader initiative to regulate online financial influencers and curb misinformation that could mislead investors.
SEBI whole-time member Ananth Narayan, speaking at the Association of Registered Investment Advisors (ARIA) summit in Mumbai, underscored the regulator’s commitment to tackling the rise of unregistered investment advisors and research analysts exploiting growing retail investor interest.
Combating Unregistered Financial Advisors
Narayan highlighted the increasing threat posed by unregistered investment advisors and research analysts who provide misleading recommendations. He emphasized SEBI’s continuous collaboration with social media platforms to filter out deceptive financial content and protect retail investors from fraud.
To strengthen investor protection, SEBI has introduced the UPI ‘Payright’ handle, a tool designed to help investors identify registered financial entities and differentiate them from fraudulent advisors.
“A common concern is the menace of unregistered investment advisors and research analysts cashing in on the growing investment interest. The UPI ‘Payright’ handle will assist investors in verifying registered entities and avoiding scams,” Narayan stated.
Nationwide Survey to Understand Investor Behavior
SEBI is also planning a nationwide investor survey to gain deeper insights into investor behavior, challenges, and requirements. This data will be instrumental in shaping regulatory policies and outreach strategies.
Narayan stressed the importance of ongoing dialogue between SEBI and various market participants, including investment advisors, mutual fund distributors, and portfolio managers, to streamline their roles and ensure better compliance with regulatory norms.
Foreign Investment Trends and Economic Implications
Discussing foreign portfolio investor (FPI) trends, Narayan pointed out that India’s inclusion in global debt indices has led to an increase in foreign debt inflows, enhancing the investment mix.
“The trend of higher FPI debt inflows compared to equity has contributed to a more balanced investment portfolio. While this is positive for India, it also underscores the need for sustained economic growth, financial stability, and strong governance,” he explained.
Upcoming SEBI Board Meeting: Key Decisions Expected
SEBI’s board is set to hold its first meeting under newly appointed chairperson Tuhin Kanta Pandey on March 24. The agenda includes easing disclosure norms by increasing threshold limits, introducing a settlement scheme for algorithmic brokers, and extending the fee collection period for research analysts.
This meeting is expected to result in significant regulatory changes aimed at fostering transparency and improving market efficiency. Investors and market participants are keenly watching for policy updates that will shape India’s financial regulatory landscape in the coming months.
