SEBI Chairman Warns Investors Against Finfluencer Tips and Unrealistic Return Claims

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has cautioned investors and traders against relying on anonymous tips from financial influencers, or “finfluencers”, and claims of unrealistic returns.

Speaking at the launch of SEBI’s Project Jagruk at Panjab University, Pandey highlighted the significant expansion of India’s capital markets over the past decade, with more households directing savings towards securities market instruments. He noted that systematic investment plans (SIPs) have emerged as a simple avenue for retail participation.

Pandey said India’s market capitalisation has quadrupled over the decade to around Rs 472 lakh crore, while foreign portfolio investor (FPI) assets have increased from ₹22 lakh crore to Rs 78 lakh crore. SEBI has also simplified the FPI framework, expanded digital onboarding and introduced measures aimed at improving ease of doing business.

He highlighted reforms including SME IPO platforms, the reduction of the IPO listing timeline from T+6 to T+3 working days, T+1 settlement, interoperability between clearing corporations and online bond platforms. Products such as REITs, InvITs and commodity derivatives have also broadened investment and risk-management opportunities.

Pandey added that SEBI has strengthened cybersecurity reporting requirements as market participation and digitisation have increased, with the regulatory framework evolving to make capital-market products accessible to a wider section of investors.