SEBI Tightens Crackdown on Finfluencers and Fake Apps

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) has intensified its efforts to regulate financial influencers (finfluencers) and curb rising cases of digital investment fraud, in collaboration with Google and other stakeholders.

Key Measures Announced

AI-Based Monitoring of Finfluencers

• Google to develop advanced AI tools to:
  • Track misleading financial content
  • Identify influencers violating regulations
• SEBI will:
  • Support development of these tools
  • Align them with Indian regulatory requirements

Crackdown on Misleading Content

• Over 100,000 fraudulent or misleading links removed
• Focus on:
  • Fake investment schemes
  • Unrealistic return promises

Verified App Labelling System

• SEBI, in partnership with Google, introduced verification tick marks on apps

Features:

• Applies to apps of:
  • Stock brokers
  • SEBI-registered intermediaries
• Helps users:
  • Identify genuine apps
  • Avoid fake or impersonating applications
• Currently:
  • 600+ apps verified

Strengthening Inter-Agency Coordination

• SEBI plans collaboration with:
  • Ministry of Electronics and Information Technology (MeitY)
  • Department of Telecommunications (DoT)

Objective:

• Strengthen action against:
  • Cyber fraud
  • Digital financial scams

Earlier Initiatives by SEBI

• “@valid” UPI handles for registered intermediaries
• “SEBI Check” platform for verifying payment IDs