SEBI Warns Investors: Beware of Social Media Trading Scams
By Market Desk
SEBI cautions investors against live trading streams and real-time tips on social media, warning of unregistered advisors and misleading claims. Protect your investments.
The Securities and Exchange Board of India (SEBI) has issued a stern warning to investors, urging them not to trust live trading strategies and real-time tips promoted across various social media platforms.
The market regulator emphasized that individuals offering unregistered advisory services through live sessions and chats pose significant risks, often drawing large audiences with misleading claims.
SEBI’s Observations on Live Trading
SEBI detailed its observations, noting a surge in individuals conducting live sessions where they provide real-time trading advice and strategies. These sessions often attract substantial viewership, with live chats allegedly facilitating the exchange of unauthorized advisory services.
Some presenters position themselves as securities-market experts, offering detailed commentary on trade entry and exit points, strategies, and positions in market indices.
They frequently display their trade performance using live data, analyze market patterns, and even indicate target price levels, creating a false impression of legitimate, real-time market expertise.
Regulatory Directives on Market Data
The market regulator underscored that sharing live market data is restricted unless absolutely necessary for market functioning or regulatory compliance. SEBI’s circular from May 8, 2026, outlines specific conditions for data dissemination.
- Market price data can only be shared for investor education and awareness.
- A mandatory 30-day lag is required for such data sharing.
- No monetary incentives should be offered to participants during these educational activities.
- Individuals focused solely on investor education are prohibited from using market price data from the preceding 30 days.
- They must not indicate future prices or provide specific advice or recommendations related to securities.
Investor Protection and Guidance
In response to these concerning trends, SEBI strongly advised investors against relying on claims made during live trading sessions. It urged them not to base investment decisions on such potentially unauthorized information.
The regulator recommended that investors should exclusively engage with SEBI-registered intermediaries when conducting transactions in the securities market. This directive aims to safeguard investors from unregistered entities and misleading practices.
This latest warning highlights the critical distinction between permissible investor education and illicit real-time trading advice, especially as financial influencers increasingly leverage social media to reach retail investors.