Project Sudarsan: How Sebi is using AI to police finfluencers with 60% of investors trusting their advice
Sebi is stepping up its use of artificial intelligence to monitor misleading financial advice on social media. Its Project Sudarsan tracks unsolicited advice, while Sebi R(AI)DAR reviews advertisements. The regulator said 62% of investors are influenced by finfluencers, highlighting the need for stronger digital surveillance and investor protection.
Sebi, the markets regulator, is harnessing artificial intelligence and data analytics to monitor misleading financial advice on social media. According to a recent survey, 62% of investors are influenced by finfluencers, indicating a growing need for digital vigilance. Sebi has launched Project Sudarsan to track unsolicited financial advice on social media and introduced Sebi R(AI)DAR, an AI-enabled platform to review advertisements.
These tools aim to identify unregistered digital activity and finfluencers who may mislead investors with unverified claims. The regulator has already taken action against over 1.2 lakh misleading posts by unregistered finfluencers on social media. Sebi's digital investor protection plan also covers payment verification and trading apps, with initiatives such as Validated UPI handles and a Sebi Check facility to verify the authenticity of payment intermediaries.
The regulator emphasizes that its actions against finfluencers are a targeted approach rather than a heavy-handed crackdown, aimed at identifying problem areas and addressing them effectively.
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