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Sebi Against Financial Fraud: Market regulator SEBI has increased monitoring of social media platforms to protect small investors from fraud. SEBI has so far deleted more than 1 lakh misleading messages.
New Delhi. Those who spend time on Facebook, Instagram and Reels will know very well how disturbing are the messages claiming to become a millionaire in two-four years by buying penny stocks worth a few rupees. Whether watching videos on YouTube or a few second clips on reels, there seems to be a flood of Guru Ghantals imparting knowledge on investment and finance. Market regulator SEBI also noticed these misleading messages and took strict action. SEBI has deleted more than 1 lakh such misleading messages present on social media platforms.
The market regulator has started a new initiative named ‘SEBI Versus Scam’, the aim of which is to prevent financial fraud on digital platforms. SEBI has found more than 1 lakh such misleading messages and posts on various social media platforms, which were removed. The purpose of this step is to protect retail investors from fraud and protect them from fake trading apps. Retail investors lose their money by falling into the trap of fake websites, inflated returns and unregistered advisors. SEBI has started this initiative to curb such frauds.
SEBI Chairman gave information
SEBI Chairman Tuhin Kant Pandey told CNBC-TV18’s Global Leadership Summit program that unregulated financial influencers are emerging as a major threat to retail investors. SEBI’s recent survey has revealed that 62 percent of retail investors depend on the suggestions of these influencers and decide their investments. He said that the security of investors will increase only by educating them, because in today’s era fake messages are spreading very fast.
Along with awareness, monitoring is also necessary
SEBI Chairman says that to prevent digital fraud, monitoring along with public awareness is also necessary. This is the reason why SEBI started monitoring social media platforms and many misleading messages were deleted. Also, investors were instructed to buy their products directly from the stock exchange or make their investments through a registered broker or app.
SEBI released verification tool
The market regulator has also launched a new verification tool to protect investors from fraud. It can be used through valid UPI or SEBI monitored source via bank account or QR code. Tuhin Kant Pandey said that this is proving to be a very effective step to protect against cyber fraud. SEBI’s survey has also revealed that 22 percent of financially aware new investors can enter the market by next year. Not only this, 36 percent of the existing investors will also know about the market and will be adequately aware. Currently, 15 percent of the investors in the market are urban while only 6 percent are rural investors.
