SEBI Crackdown on Manipulative Social Media: A Battle for Market Integrity

The Securities and Exchange Board of India (SEBI) has flagged 1.33 lakh manipulative social media posts to platform providers, according to a ministerial disclosure in the Lok Sabha. This initiative aims to curb misleading content in the securities market, though SEBI currently operates without AI monitoring tools. Transparency and investor safety remain priorities.

The Securities and Exchange Board of India (SEBI) has escalated 1.33 lakh social media contents related to securities manipulation, according to a disclosure made in Parliament. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that these contents were reported to social media platforms by SEBI up to February 28, 2026.

SEBI's actions come in response to inputs on misleading, manipulative, or unlawful content affecting the securities market. Under the current regulatory framework, SEBI works with platform providers to remove or disable such content, although it does not use AI tools for tracking purposes.

Emphasizing investor protection and transparency, SEBI mandates registered entities to display their registration details prominently. It also coordinates with platforms to mitigate misleading advice from unregistered "finfluencers." Investor awareness campaigns are another tool employed by SEBI in its regulatory efforts.

(With inputs from agencies.)