SEBI Deploys AI Tools To Curb Finfluencer Risk, Says 62% Of Investors Influenced By Them

The Securities and Exchange Board of India's latest annual report has outlined a technology-driven approach to investor protection, with Chairman Tuhin Kanta Pandey saying nearly two-thirds of investors are influenced by finfluencers, prompting the regulator to deploy new artificial intelligence tools to address misleading financial content online.

Pandey said investor protection can no longer rely solely on conventional regulatory mechanisms, as financial advice increasingly moves to social media platforms. According to SEBI's latest investor survey, 62% of investors are influenced by finfluencers, many of whom operate without regulatory oversight or verifiable performance records.

"This digital vigilance is further necessitated by our latest Investor Survey, which revealed that 62% of investors are influenced by finfluencers, many of whom operate without accountability or verified performance data," Pandey said.

New AI Tools Deployed

To address this, SEBI has launched Project Sudarsan, an AI platform designed to monitor unsolicited financial advice circulating on social media. The regulator has also deployed R(AI)DAR, an AI-enabled system that reviews advertisements issued by asset management companies to identify misleading or unauthorised promotional content before it reaches investors.

Pandey said data has become as important to market integrity as traditional market infrastructure, requiring regulators to invest in technology that scales with investor participation. "SEBI has responded to this shift by investing in technology and data analytics as core supervisory tools, ensuring that while the market scales, the safety net for the investor scales even faster," he said.

Pandey also highlighted initiatives such as validated UPI handles, the SEBI Check facility and verified app labels on Google Play, which are aimed at helping investors distinguish legitimate intermediaries from fraudulent operators.

While emphasising AI-driven oversight, Pandey said technology alone cannot replace informed investing. SEBI conducted nearly 3.9 lakh investor awareness programmes during 2025-26, alongside nationwide campaigns such as "SEBI vs SCAM" aimed at strengthening financial literacy.

The annual report indicates that SEBI's regulatory focus is shifting from expanding market access to building resilience through technology, with artificial intelligence expected to play a growing role in preserving market integrity, curbing misinformation and protecting India's expanding base of retail investors.