India Cracks Down on 'Finfluencers' and Tightens Derivatives Rules, Removes 120k Posts

India's SEBI removed over 120,000 misleading social media posts from financial influencers, its chairperson Tuhin Kanta Pandey announced. While supporting free financial education, the regulator maintains "zero tolerance" for deceptive promotions.

All investment advisors must register with SEBI, which uses its AI tool 'Sudarshan' to detect violations. Meanwhile, the RBI has tightened market access by maintaining strict lending rules for brokers and banning proprietary trading financing.

The crackdown follows data showing Indian retail traders lost approximately $34 billion in derivatives trading over four years, with 91% of futures and options investors suffering losses.