62% of Indian Investors Follow Finfluencers, Sebi Deploys AI-Powered Project SUDARSAN to Crack Down on Fraud

Key Highlights

• Sebi has operationalised AI-powered Project SUDARSAN to detect fraudulent investment content online.
• The regulator's latest investor survey found 62% of investors are influenced by finfluencers while making investment decisions.
• The AI platform monitors videos, images, advertisements, messages and regional-language content across social media.
• SUDARSAN identifies misleading claims such as guaranteed returns, fake certifications, impersonation of registered entities and unregistered investment advice.
• Since its launch in November 2025, the system has flagged over 20,000 instances of suspicious financial content.
• Sebi has also introduced an API-based verification system to restrict securities-related advertisements to registered intermediaries.
• Another AI tool, R(AI)DAR, helps monitor advertisements and investor awareness campaigns by asset management companies.
• Sebi's survey found that 80% of respondents prefer short-form videos for learning about investments, while 69% rely on social media.
• The regulator is expanding AI-driven surveillance to improve investor protection and reduce digital financial fraud.

India's capital markets regulator is increasingly relying on artificial intelligence to combat misleading investment content circulating on social media. The move comes after its latest investor survey revealed that 62% of investors are influenced by finfluencers, highlighting the growing impact of online financial creators on investment decisions.

Sebi launches AI-powered Project SUDARSAN

To strengthen market surveillance, Sebi has operationalised Project SUDARSAN (Surveillance of Unauthorised Digital Activity via Real-time Scanner for Anti-fraud). The AI-powered platform continuously scans publicly available content across major social media platforms.

Unlike traditional monitoring systems, Project SUDARSAN analyses multiple formats simultaneously, including videos, images, advertisements, text posts, voice content and regional-language material. It evaluates behavioural patterns and contextual signals before assigning risk scores and generating alerts for further regulatory action.

What kind of content does Sebi target?

The platform has been designed to identify several forms of misleading investment content, including:

• Guaranteed-return investment schemes
• Fake certifications and credentials
• Impersonation of Sebi-registered entities
• Unregistered investment advisory services
• Fraudulent promotional campaigns
• Misleading financial advertisements

Rather than relying only on keywords, the AI examines the overall context, visuals and spoken content to detect potential violations.

More than 20,000 suspicious posts already identified

According to Sebi, Project SUDARSAN has already identified over 20,000 instances of suspicious financial content since becoming operational in November 2025.

The regulator says AI-driven monitoring has significantly reduced manual oversight while enabling faster detection of potentially harmful investment promotions before they spread widely.

Additional measures to curb online financial fraud

Project SUDARSAN is part of a broader digital surveillance strategy.

Sebi has introduced an API-based verification framework with social media platforms that allows only Sebi-registered intermediaries to publish securities-related advertisements.

It has also deployed R(AI)DAR, another AI-based compliance tool that monitors advertisements and investor education material published by asset management companies. The system can identify misleading promotions, disguised advertisements and missing mandatory disclosures.

To improve investor safety, Sebi has also introduced:

• Sebi Check verification facility
• Validated UPI payment handles
• Verified stock trading app labels in collaboration with Google Play

These initiatives aim to make it easier for investors to verify legitimate financial service providers before investing.

Why Sebi is concerned about finfluencers

The regulator's concern is not simply about the popularity of financial influencers but about investors treating online content as professional investment advice without verifying credentials.

Many finfluencers operate without regulatory registration, verified track records or proper risk disclosures. Misleading claims, especially promises of guaranteed returns, can expose retail investors to significant financial losses.

What Sebi's investor survey found

The regulator's nationwide survey covered more than 90,000 households across India.

Some key findings include:

• 62% of investors are influenced by finfluencers.
• 80% prefer short-form videos to learn about investing.
• 69% rely on social media for financial information.
• 63% of households are aware of investment products.
• Only 9.5% actively invest in securities markets.
• 74% of non-investors find financial products too complex.
• 73% worry about potential investment losses.
• 51% have low trust in financial institutions.
• Nearly half of respondents prefer learning in Hindi or regional languages.

The findings underline why social media has become one of the most influential channels for financial education and why Sebi is strengthening its digital monitoring capabilities.

Frequently Asked Questions (FAQs)

1. What is Project SUDARSAN?

Project SUDARSAN is Sebi's AI-powered surveillance platform that monitors social media for fraudulent investment advice and misleading financial content.

2. Why did Sebi launch Project SUDARSAN?

It was introduced to identify unauthorised investment advice, fake financial promotions and online scams before they mislead investors.

3. What percentage of investors follow finfluencers?

Sebi's latest investor survey found that 62% of investors are influenced by finfluencers.

4. What types of content does SUDARSAN monitor?

The platform scans videos, images, text posts, advertisements, voice content and regional-language posts across social media.

5. Can Project SUDARSAN detect fake investment schemes?

Yes. It is designed to identify guaranteed-return claims, fake certifications, impersonation and unregistered investment advice.

6. How many fraudulent posts has Sebi identified?

The regulator says the platform has flagged more than 20,000 suspicious instances since November 2025.

7. What is R(AI)DAR?

R(AI)DAR is Sebi's AI-based compliance monitoring system that reviews advertisements and investor education material published by asset management companies.

8. Why are finfluencers a concern for Sebi?

Many finfluencers are not regulated, and investors may rely on their advice without verifying credentials or understanding investment risks.

9. Does Sebi verify investment advertisements?

Yes. Through an API-based framework, only Sebi-registered intermediaries are allowed to publish securities-related advertisements on participating social media platforms.

10. How can investors verify legitimate financial service providers?

Investors can use Sebi Check, validated UPI handles and verified stock trading app labels to confirm whether a financial intermediary is registered with Sebi.