No more misleading stock tips? Sebi cracks down on fraudulent influencers
New Delhi, Aug 27, 2025
SEBI is intensifying its crackdown on unregistered investment advisors and financial influencers who mislead retail investors through social media.
If you’ve ever come across a flashy stock market tip on WhatsApp, Telegram, YouTube, or even TV—promising “sure-shot multibaggers” or “guaranteed profits”—market regulator Sebi wants you to be cautious. Sebi has now stepped up its crackdown on unregistered investment advisors and so-called finfluencers who mislead retail investors with risky or fraudulent recommendations.
What is Sebi doing about it?
Sebi Whole-time Director Kamlesh Chandra Varshney on Tuesday said the regulator is working with Meta (Facebook, Instagram, WhatsApp) to verify financial ads and ensure only registered advisors can promote them.
A dedicated SEBI monitoring team is already flagging illegal stock tips and misleading posts to Google and Meta, which take them down within hours.
Enforcement action has been initiated against TV experts, penny stock manipulators, and influencers who pose as “educators” but actually push unregistered advice.
“We have no objection to genuine educators, but we will act against those luring investors with false promises,” Varshney clarified.
He said enforcement actions are being taken against violators, including TV experts and penny stock manipulators, while clarifying that SEBI has no objection to genuine “educators” but will act against those who, under that guise, provide unregistered trading advice or lure investors with false promises.
Safer IPOs for Retail Investors
Apart from tackling finfluencers, SEBI is also tightening IPO rules to protect small investors:
Conservative Valuations: Merchant bankers and anchor investors are being told to keep IPO pricing realistic to prevent post-listing crashes.
Large IPOs Made Easier: Exceptionally big companies (like the NSE) may get 10 years instead of 5 to meet the 25% public shareholding norm, making mega IPOs more feasible.
This means investors could see more large IPOs come to market, but at valuations that are more grounded and less risky.
Varshney said the regulator has floated a consultation paper proposing to extend the deadline for achieving 25 per cent public shareholding to 10 years for exceptionally large companies.
Currently, companies must meet this requirement within five years of listing. This relaxation, he said, will make large IPOs such as that of the National Stock Exchange more feasible.
Varshney added that SEBI is advising merchant bankers and anchor investors to adopt “realistic and conservative valuations” in IPOs to avoid post-listing price erosion that could dent retail investor confidence.
Why it matters
For retail investors, SEBI’s moves signal safer investing conditions:
Fewer chances of being duped by “fake gurus” on social media.
IPOs priced more reasonably, reducing the risk of losing money after listing.
Easier access to large, high-quality companies going public.
Investor Education Push
Sebi is also rolling out campaigns in schools and universities to help young Indians understand the basics of investing and how to differentiate between genuine advisors and fraudsters.
In short: Sebi wants you to invest—but wisely, and without falling prey to manipulation.
[The Business Standard]
