Sebi warns investors against social media trading tips

Markets regulator Sebi on Monday cautioned investors against relying on live or real-time trading strategies offered on social media platforms, warning that such sessions may involve unregistered investment advisory services. The regulator said it has noticed individuals portraying themselves as experts, providing real-time tips on stock market positions through live trading sessions.

Sebi stated that these individuals showcase trade performance and market patterns based on live data. It also noted that such sessions attract a substantial number of viewers, with live chats where unregistered advisory services are allegedly exchanged. The regulator reminded that its May circular permits sharing market price data for education only with a 30-day lag and without monetary incentives.

Sebi clarified that live market data cannot be shared except for orderly market functioning or regulatory requirements. It advised investors not to trust such claims, not to base decisions on these sessions, and to deal only with Sebi-registered intermediaries. The regulator urged vigilance and avoiding unregistered persons for investment advice.