Tuhin Kanta Pandey, head of the Securities and Exchange Board of India, confirmed on Wednesday that the regulator is systematically scrubbing 6,000 to 7,000 social media posts every month. These deletions target unlicensed 'finfluencers' who distribute specific stock tips without holding the mandatory SEBI registration. The crackdown aims to stop unscrupulous promoters from colluding with these influencers to execute 'pump and dump' schemes against retail investors.
Pandey made the disclosure while launching Project Jagrook at Panjab University in Chandigarh, his alma mater. The initiative is a nationwide investor education drive co-organized with AMFI, NISM, NSE, BSE, and other market infrastructure bodies. He distinguished between three types of market commentators: registered professionals, unregistered individuals offering educational content, and those actively defrauding investors. "The problem arises when they cross the line defined by our regulations," Pandey told the audience. "If someone provides specific investment advice without the required licence, they are operating irresponsibly."
For those caught in coordinated fraud networks, the penalty extends beyond content removal. SEBI can order the disgorgement of illegally earned profits and bar individuals from participating in the securities market entirely. These actions rely strictly on evidence and investigation, the chief noted. He emphasized that while individuals have a fundamental right to express opinions and provide financial education, providing specific, actionable trading advice requires a license.
Pandey also addressed the ongoing regulatory reforms. A day earlier, he stated that SEBI received approximately 1.4 lakh responses to its consultation paper on the closing auction session (CAS). The deadline for submitting feedback on these proposals, along with pricing for derivatives products, was October 3. The regulator is currently analyzing these inputs and expects to release revised rules for the CAS and derivatives pricing soon.