SEBI's AI tool removes 120,000 posts by unregistered finfluencers
What's the story
The Securities and Exchange Board of India(SEBI) has removed over 120,000 misleading social media posts from unregistered financial influencers. The action was taken using an artificial intelligence (AI) tool called 'Sudarshan,' which tracks violations in the digital space. SEBI Chairman Tuhin Kanta Pandey confirmed this development in an interview with ANI.
Regulatory clarity
Difference between financial education, misleading advice
Pandey reiterated that SEBI regulations clearly state that investment advice can only be given by registered entities. He emphasized the difference between financial education and misleading advice, saying "People have every right to express themselves and undertake financial education as part of their fundamental right to freedom of expression." However, he added that when this line is crossed with misleading information, SEBI intervenes to remove such content.
Tech intervention
SEBI's AI tool 'Sudarshan' tracks multilingual content
To strengthen its surveillance, SEBI has deployed an in-house AI tool called "Sudarshan." Pandey explained that this tool helps track multilingual audio, video, and other content to identify where transgressions occur. He also said that social media platforms are cooperating with SEBI's efforts to remove misleading content from their sites.
Market influence
Rise of retail participation in derivatives markets
Pandey also spoke about the impact of social media narratives on retail participation in derivatives markets after COVID-19. He said many retail investors were influenced by claims of easy money from options trading. In response, SEBI took data-backed measures and issued investor warnings about potential losses in these trades.
Balanced strategy
Pandey on personal due diligence, market regulation
Pandey described market regulation as a calibrated exercise, not a heavy-handed approach. He said SEBI's goal is to achieve optimum regulation without over-regulating or under-regulating the market. The chairman also stressed on the importance of personal due diligence in safeguarding against market risks, even as SEBI deploys advanced tools like AI to weed out bad actors from the ecosystem.