Now Reading: SEBI did not act against 95.8% of finfluencers even after warning signs: CFA study
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SEBI did not act against 95.8% of finfluencers even after warning signs: CFA study
SEBI did not act against 95.8% of finfluencers even after warning signs: CFA study
Market regulator SEBI did not penalise 95.8% of finfluencers despite many showing warning signs or raising concerns, according to a CFA Institute survey released in 2026. The study of 48 influencers found…
The Story in Brief
Market regulator SEBI did not penalise 95.8% of finfluencers despite many showing warning signs or raising concerns, according to a CFA Institute survey released in 2026. The study of 48 influencers found SEBI action in only 6.25% of cases. Only three finfluencers (6.3%) in the sample are SEBI-registered; the rest are not.
CFA found 37.5% of finfluencers did not disclose conflicts of interest such as sponsored content. Meanwhile, SEBI's own AI-powered Project SUDARSAN has flagged over 20,000 fraudulent social media posts since November 2025, the regulator's annual report says. SEBI's investor survey found 62% of investors make decisions based on finfluencer recommendations.
The Indian Opinion
Two narratives jostle here: one says SEBI is asleep at the wheel, another that it is cracking down with AI. Both are partly true. The CFA study shows enforcement remains rare even when red flags appear. But SEBI's Project SUDARSAN proves it can identify abuse at scale. The real test is whether detection leads to action. Watch how many of those 20,000 flagged posts result in actual penalties in the coming year. That number will tell us which narrative holds.
Sources (2): thehindu.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
