The Securities and Exchange Board of India (SEBI) has initiated measures to take action against finfluencers involved in fraud and regulatory violations in the financial market. SEBI Chairman Tuhin Kanta Pandey said the regulator has urged major technology companies, particularly Google, to strengthen their artificial intelligence (AI) tools and enforcement mechanisms to monitor financial influencers who mislead investors and violate regulations.
Pandey stated that greater coordination among technology companies is necessary to identify fraudulent actors and enable effective enforcement action against them. He added that millions of links containing misleading content on social media have already been removed. Google has also been asked to activate and strengthen its AI-based systems to identify finfluencers who are violating regulatory norms.
SEBI aims to protect investors through tools designed to shield them from fake and fraudulent apps and platforms. Pandey said regulators and technology companies must jointly develop mechanisms to curb illegal activities in cyberspace. Individuals or platforms that mislead investors will be effectively targeted and removed.
The initiative is intended to ensure that investors have access to accurate information and reliable platforms, allowing them to invest without exposure to fraud. Technology companies such as Google play a key role in this effort, as their data and AI tools can help detect fraudulent activities.
SEBI and Google have introduced a “verified app labelling” system to help investors identify legitimate applications. Under this initiative, apps of SEBI-registered intermediaries, including stock brokers, will carry a verification tick mark on the Google Play Store. This is expected to help investors distinguish genuine apps from fraudulent ones.
More than 600 apps have already been verified under this system. The facility will soon be extended to other registered intermediaries. Pandey said the initiative will guide investors towards safe and reliable digital investment platforms.
SEBI’s oversight extends beyond apps to include monitoring finfluencer activity on social media platforms. Pandey said the regulator is continuously tracking content that misleads investors or violates regulatory norms. AI tools from technology companies such as Google are expected to play an important role in this process.
He added that SEBI is implementing measures within its legal framework to remove fraudulent actors from social media and digital platforms, ensuring investor protection and market transparency.
The initiative is expected to provide two key benefits for investors. First, it will enable them to distinguish between genuine registered apps and fake ones. Second, it will help them remain alert to misleading and fraudulent finfluencers on social media.
Pandey also urged investors to use only registered and trusted platforms and avoid suspicious apps or content. The partnership between SEBI and Google is aimed at strengthening the safety of digital investments and reducing risks arising from fake apps and misinformation.
