Everyone wants to earn quick profits by investing in the stock market. Taking advantage of this greed, several individuals on social media claim to be market experts. If you also invest your money based on the advice of such individuals, you need to be cautious immediately. Market regulator SEBI Chairman Tuhin Kant Pandey has clearly cautioned general investors in a press conference. He described unregistered social media influencers as a major threat to the hard-earned money of investors, while sEBI is now going to take strict action against them using artificial intelligence.
The Fraudulent Game Running in the Name of Membership
SEBI Chairman Tuhin Kant Pandey revealed in his press conference how ordinary people are being trapped through social media. There are many such social media influencers who don't have any registration with SEBI. These people influence common people on social media and then lure them to join their group or special membership. In exchange for this membership, heavy money is extracted from people. The most shocking thing is that the money taken from investors is actually never invested in the stock market. This means the money given by investors trusting tips or investments never reaches the market, and people fall victim to fraud.
Cheap Penny Stocks Also Pose a Major Risk
Not only fake social media experts, but the SEBI Chairman has also issued a strict warning regarding low-priced shares known as penny stocks, while small investors often run after low-priced penny stocks and invest blindly. Tuhin Kanta Pandey clearly stated that penny stocks are a big risk for investors. The biggest reason for this is that there are many such companies listed in the stock market where there has been no business activity for years. The company business has been closed for years, yet their shares exist in the market. Investing in such shares can prove to be a direct loss-making deal for investors.
Regulatory Process Will Be Accelerated and Strengthened
Preparations are now underway to tighten rules to protect investors from shares of closed companies. The SEBI Chairman acknowledged that there is an urgent need to make the regulatory process much stricter in this matter. Along with this, the process of action must also be expedited so that companies listed without operations for years can be curbed in time. SEBI is now expediting its entire process much faster than before to maintain transparency in the market.
SEBI Will Tighten Grip on Fake Influencers Using AI
To curb the fraud spreading rapidly on social media, SEBI has now decided to take the help of modern technology, while chairman Tuhin Kanta Pandey stated that SEBI is bringing strict rules to monitor social media. Artificial Intelligence is being utilized to accomplish this work swiftly. Through AI, SEBI will be able to easily track all unregistered influencers who are illegally taking money from people in the name of membership without permission. This step by SEBI will completely close the path for fake advisors in the coming days and ensure better protection of investor interests.