SEBI chief warns investors against finfluencers, anonymous tips and high-return claims

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on October 5 cautioned investors against taking investment decisions based on finfluencers, anonymous recommendations or claims of unusually high returns, as the market regulator intensifies efforts to improve financial awareness.

Speaking at the launch of SEBI’s Project Jagrook at Panjab University in Chandigarh, Pandey asked investors to rely on regulated products, entities and channels rather than unverified sources, according to a report by moneycontrol.

He advised investors to choose financial products they understand, begin investing early, stay invested over longer periods and spread their investments across different avenues.

Pandey also stressed that investment decisions should be based on an investor’s own understanding rather than following popular trends or advice from others.

“Do not invest because someone told you to, do not invest because everyone else is investing. Invest because you understand,” he said.

SEBI has also introduced MUST, a programme aimed at improving securities-market awareness among university students.

Market awareness outpaces participation

Pandey's comments come against the backdrop of a significant expansion in India's securities markets, with more households entering equities, mutual funds and other market-linked investments.

However, a SEBI survey found a sizeable gap between awareness of securities-market products and actual participation.

According to Pandey, around 63% of households were aware of at least one securities-market product, but only 9.5% were participating in the market. The survey also showed that just 36% of investors had either moderate or high knowledge of securities markets.

Participation levels differed significantly between urban and rural India. While around 15% of urban households participated in the securities market, the figure stood at only 6% in rural areas.

The survey also indicated that investors preferred receiving information on financial products in Hindi and regional languages instead of relying solely on English. Awareness of SEBI's investor-focused initiatives was also found to be low.

Project Jagrook targets wider reach

Project Jagrook has been launched in response to these findings, bringing SEBI, stock exchanges, depositories, the Institute of Securities Markets (NISM) and other partner organisations together for a coordinated investor-education effort.

The initiative will seek to make securities-market concepts easier to understand by cutting down on technical jargon. Its outreach will use television, print, radio, cinema, digital platforms, social media, OTT services and WhatsApp.

The campaign will be available in English, Hindi and 11 regional languages, Pandey said.

The first media campaign is being launched now, with communication efforts planned to continue through March 2027.

SEBI is also working with the Ministry of Panchayati Raj to take financial-literacy programmes to the last mile. Initiatives are also being planned for colleges and universities.

Capital market investor base grows

Pandey said India's securities markets have become more accessible and deeper over the past decade. The number of demat accounts has risen to 23.8 crore, while unique investors now number around 15 crore.

Market capitalisation has increased from approximately ₹95 lakh crore in FY16 to around ₹472 lakh crore. Foreign portfolio investor assets have risen from about ₹22 lakh crore to nearly ₹78 lakh crore during the same period.

Mutual fund assets under management have also grown sharply, rising from around ₹12 lakh crore a decade ago to approximately ₹87 lakh crore.

According to Pandey, the rapid expansion in market access needs to be matched by stronger investor understanding.

“Our securities market is more democratic and accessible than ever, but access alone is not enough. Investors must also be informed,” he said.

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