SEBI’s AI Tool Pulls 1.2 Lakh Finfluencer Posts

SEBI has deployed AI tool Sudarshan system to scan social media for misleading investment content posted by unregistered financial influencers. More than 120,000 posts have been removed so far.

India’s markets regulator has deployed an in-house AI system to scan social media for misleading investment content posted by unregistered financial influencers. More than 120,000 posts have been removed so far.

The Securities and Exchange Board of India has used an in-house AI surveillance tool, named Sudarshan, to identify and remove more than 1.2 lakh social media posts by unregistered financial influencers. SEBI Chairman Tuhin Kanta Pandey disclosed the figures on March 2. The tool scans multilingual audio and video content, looking for keywords and buy-and-sell signals that indicate a post has crossed from financial commentary into investment advice, a distinction with legal weight, since only SEBI-registered entities are permitted to offer investment advice in India.

The enforcement targets a segment that grew sharply after 2020, when a wave of first-time retail investors entered Indian markets alongside a surge of social media content making optimistic claims about returns. SEBI’s own data shows nine out of ten retail investors lose money in Futures and Options trading, the segment most prominently featured in finfluencer content. Sudarshan’s multilingual capability is central to its reach: financial misinformation in India circulates widely in Hindi, Tamil, Telugu, Marathi, Bengali, and other regional languages, well beyond the scope of English-only monitoring.

SEBI has not disclosed which platforms the posts were removed from, the breakdown of content types, or when the tool was first deployed. NervNow will update this story when official documentation is available on sebi.gov.in.

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NN Desk

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