Market regulator SEBI has issued a stern warning to investors against taking investment decisions based on 'live trading strategies' or 'real-time strategies' offered on social media platforms. According to SEBI's official statement, the regulator has noticed that certain individuals are offering real-time tips on taking positions in the stock market through live trading sessions. These individuals portray themselves as experts in the securities market and provide detailed analysis of when to invest, when to exit, strategies to be followed and positions to be taken on market indices.
The emergence of finfluencers has made stock market advice more accessible for investors, but it has also left many nursing losses after acting on social media recommendations. According to a recent report by CFA Institute, only 6.3% of finfluencers are registered with the Securities and Exchange Board of India (SEBI), even as one in three continue to make explicit stock recommendations. This highlights a significant gap between regulated investment advice and financial content shared online, prompting the markets regulator to caution investors against social media accounts offering 'live trading strategies' and real-time stock market tips that may amount to unregistered investment advisory services.
SEBI has specifically identified the format of these live sessions as a key concern. Live trading sessions typically involve live broadcasts during market hours on platforms such as YouTube and other social media channels, where hosts share live screens showing market movements, charts, prices or trading positions while explaining market analysis. The sessions often include commentary about when to enter or exit trades, what positions to take on indices, where targets could be reached, and what strategies should be followed. The central issue is live market data, as SEBI's May 8, 2026 framework states that market price data can be shared for investor education and awareness activities only with a 30-day lag. The regulator emphasizes that a session presented as 'education' can potentially become a real-time advisory service if the presenter starts telling viewers what to buy, sell, when to enter or exit, or what position to take.
Investors who have lost money due to misleading claims and recommendations from finfluencers can take several legal steps to seek recourse. According to legal experts, an investor can initiate a formal complaint against a finfluencer for giving misleading stock recommendations but not simply because the investment resulted in a loss. If the influencer was unregistered, gave misleading advice, manipulated prices, or failed to disclose a conflict of interest, the investor should preserve evidence and report the matter to SEBI. SEBI can take action against finfluencers who provide unregistered investment advice or stock recommendations for consideration, including through indirect monetisation such as course sales, subscriptions, sponsorships or affiliate commissions. The regulator may impose penalties, bar individuals from the securities market, order disgorgement of unlawful gains and direct refunds to affected investors.
SEBI has been actively taking enforcement action against unregistered investment advisory activity and trading recommendations disseminated through social media. In May 2026, the regulator passed an interim order in a matter involving stock recommendations given through social media, and has recently initiated recovery proceedings against individuals in connection with trading-based stock recommendations disseminated through YouTube, including cases relating to recommendations in the scrip of Sadhna Broadcast. In July, SEBI also passed a final order in a case involving an unregistered investment adviser operating under the name 'Safe Trading'. Against this regulatory backdrop, SEBI advised investors not to trust claims made by persons offering live or real-time trading strategies on social media and not to base their investment decisions on such sessions. The regulator emphasized that investors are advised to not trust claims of such persons and not to take their investment decisions on such live trading sessions and to deal with only SEBI registered intermediaries. SEBI urged investors to remain vigilant while carrying out transactions in the securities market and to avoid relying on unregistered persons or entities for investment advice.
