SEBI is using AI to track finfluencers: What it means for investors and how to stay safe

Finance content is everywhere now.

Instagram reels, YouTube videos, Telegram channels, WhatsApp groups, and even short “market tips” posts show up daily. Some of it is genuinely educational. A lot of it is built to trigger quick action.

And that is exactly where problems start.

SEBI’s Chair has said SEBI is deploying AI tools for real-time surveillance, including tracking unregistered advice and misleading promotions.

This article explains what that means in simple terms, and gives you a practical checklist and verification steps so you can protect yourself from risky content.

What SEBI said

SEBI’s Chair has indicated SEBI is using AI for real-time market surveillance. In the coverage, the focus includes detecting insider trading patterns and tracking unregistered advice and misleading promotions that can harm investors.

Why does this matter to you?

Because the way investors take decisions has changed.

Earlier, “tips” spread through small circles. Today, one creator can influence thousands of people within minutes. When that influence causes harm, SEBI’s job is to step in.

So the bigger message is this:
If content is pushing people to take financial actions at scale, regulators and platforms will tighten controls.

The real risk with finfluencer content

Finfluencer content becomes risky when it shifts from education to action-pushing.

Education usually looks like this

• Explaining concepts like inflation, asset allocation, diversification
• Showing how mutual funds work
• Teaching how to read a fund fact sheet
• Talking about risk and time horizon clearly

Advice-like content usually looks like this

• “Buy this stock now”
• “Target in 2 days”
• “Confirmed multibagger”
• “DM for entry” or “Join my paid Telegram group”
• “Guaranteed returns”

The problem is not that people learn from content. The problem is when content becomes a shortcut that replaces your own process.

A simple checklist: 10 red flags to spot risky content

If you see even one of these, pause and re-check.

1. “Guaranteed returns” or “fixed profit”
2. Urgency like “only today”, “entry now”, “don’t miss this candle”
3. DM/Telegram for exact picks or “paid group for entries”
4. Risk-free language like “no downside”, “sure-shot”, “confirmed”
5. Only screenshots with no full context, no audited track record
6. Wins shown, losses hidden
7. Affiliate money not disclosed clearly
8. “SEBI approved” claimed vaguely, no verifiable registration proof
9. Fake credibility like “featured in media” badges and unverifiable testimonials
10. Pushing leverage and F&O like it is easy income without risk framing

How to verify before you trust (2-minute steps)

Most people skip verification because they assume popularity equals credibility. It does not.

Step 1: Check if they are SEBI-registered

SEBI has a public database where you can search recognised intermediaries and verify registrations.

What to check:

• Name of person or entity
• Registration number (if they claim one)
• The category they are registered under

Important: A person can be registered in one category and still market other things loosely. Treat registration as a starting point, not a full trust badge.

Step 2: If money is involved, verify the payment channel

SEBI also provides “SEBI Check” to verify intermediary-related details and payment modes where applicable.

This matters because many scams follow this pattern:

• “Pay ₹2,999 for premium group”
• UPI handle keeps changing
• Receipts are unclear
• Refund policy is not written

If the payment path is unclear, do not proceed.

Step 3: Ask these questions before paying

Use this checklist before you spend a single rupee:

• What is your exact SEBI registration number?
• Under which category are you registered?
• What am I paying for exactly: education, research, model portfolio, or advisory?
• What will I receive in writing after payment?
• What is the refund policy in writing?

If the answers are emotional, defensive, or vague, that is enough to stop.

“They say it is education only.” How to judge that claim

Many creators add a line like:
"Education only, not advice."

That line is not the filter. Behaviour is the filter.

Use this simple rule: If the content pushes a specific security, specific timing, or specific target, it is not just education in spirit.

What education sounds like

• “Here’s how drawdowns work”
• “Here’s how to compare funds”
• “Here’s how risk and return behave over time”

What advice-like behaviour sounds like

• “Buy this at this price today”
• “Target X in 2 days”
• “I will give you entries on Telegram”

Also, platforms are tightening around this theme too. For example, there has been reporting around SEBI verification becoming relevant for certain investment ads on Meta platforms.

Why profit screenshots are a trap

Profit screenshots feel like proof. But they are not a process.

A screenshot can hide:

• position size
• drawdowns
• multiple failed trades
• leverage
• survivorship bias
• luck in timing

The bigger issue is behaviour. Screenshots train your brain to copy outcomes without understanding the risk behind them.

That is like copying a prescription without diagnosis.

If you already followed a tip, do this next.

No judgement. Many people have done it once.

Here is a clean, practical way to reset.

1. Stop adding more money to “recover”

Most damage happens after the first mistake, when you chase recovery quickly.

2. Write down what you bought and why

Not for social media. For yourself.

- What made you buy?
- What was the claim?
- What time horizon were you told?
- What was your plan if it goes wrong?

This converts regret into learning.

3. Check concentration risk

If one tip-based position dominates your portfolio, it is not investing. It is a bet.

4. Re-check your time horizon

Most tips are short-term. Most goals are long-term. That mismatch creates stress and bad decisions.

5. Keep documentation if you paid money

If you paid for a service, keep proof of:

• payment
• messages
• receipts
• what was promised

This is not legal advice. It is basic hygiene.

A safer way to use market content (a framework)

You do not need to stop consuming finance content. You need to change how you use it.

Use content for questions, not signals

Whenever you see a “hot pick”, ask:

• What is the real risk here?
• What can go wrong?
• What time frame is this idea meant for?
• If this fails, what is my maximum damage?
• Does this fit my asset allocation?

If the content does not help you answer these, treat it as entertainment.

Follow a goals-first order

A simple order that reduces regret:

1. Emergency buffer
2. Protection (term, health)
3. Debt plan (loans, EMIs)
4. Asset allocation
5. Long-term investing process
6. Then, and only then, “extra ideas”

It is boring. That is why it works.

Takeaway

• If someone sells certainty, pause.
• Use the 10 red flags checklist before acting.
• Verify registrations using SEBI’s recognised intermediaries search.
• If money is involved, verify payment channels where applicable via SEBI Check.
• Content can teach you. It should not replace your plan.

FAQs

1. Is following finfluencers illegal in India?

Consuming content is not the point. The risk is acting on unverified claims and paying unverified sources. Regulators focus on preventing investor harm and misleading promotion patterns.

2. How do I check if someone is SEBI-registered?

Use SEBI’s recognised intermediaries database to search and verify the person or entity.

3. What is SEBI Check?

It is a SEBI facility meant to help verify intermediary-related details and payment modes where applicable.

4. Are Telegram/WhatsApp tip groups safe?

They can be high-risk because accountability is low, claims are hard to verify, and urgency tactics are common. Use the checklist and verification steps before trusting anything.

5. What is the difference between education and advice?

Education explains concepts and trade-offs. Advice-like content pushes specific actions, timings, and targets.

6. What should I do if I already paid for a tips service?

Stop further payments, keep proof of communication and payments, and rebuild your process so future decisions are based on goals and allocation, not signals.

Disclaimer: This article is for investor education only. It is not investment advice, and it does not recommend any security, strategy, or product. Please do your own checks and take decisions based on your risk profile, goals, and time horizon.