SEBI cautions against social media trading strategies
India's securities market regulator, SEBI, has warned investors against "real-time trading strategies" promoted on social media. Those offering such advice are not registered investment advisors.
India's Securities and Exchange Board (SEBI) has issued a caution to investors regarding "real-time trading strategies" being promoted on social media platforms. The regulator stated that individuals offering these strategies are not registered to provide investment advice.
SEBI has identified individuals providing real-time trading advice, including sharing investment-related information like market indices, entry and exit points, trading strategies, expected price targets, and recommendations on when to enter or exit stock positions.
The regulator emphasized that investors should not trust such claims and that investment decisions should only be made through SEBI-recognized intermediaries. SEBI permits market price data to be shared for investor education and awareness purposes only after 30 days, without offering monetary incentives.
According to the authority, this 30-day threshold relates to norms issued in May 2024 concerning the sharing of real-time price data with third parties. Entities may share live market data only for the orderly functioning of the securities market or to fulfill regulatory requirements.