Over the past 18 months, more than 100,000 unlawful contents have been removed from social media platforms, according to Sebi Chairman Tuhin Kanta Pandey. He emphasised the importance of protecting unsuspecting investors from fraudsters. Pandey noted that Sebi has raised concerns about illegal content with companies like Google and Meta. He stressed that maintaining trust is crucial to prevent investors from being misled by deceptive online content.

Speaking at an investor awareness event at NSE, Pandey highlighted how technology has made it easier for wrongdoers to spread misleading information. He pointed out that trust is vital to ensure no one falls victim to such schemes. “When trust is broken, the engine of our economy falters,” he warned, noting that a lack of trust can lead to reduced investments and higher capital costs.

Investor Awareness and Education

Pandey revealed that only 36% of people have a high or moderate understanding of capital markets, based on a recent survey of 90,000 respondents conducted by Sebi. This knowledge gap makes many individuals vulnerable to fraudulent schemes. To address this issue, Sebi is focusing on investor awareness and education as a top priority.

The regulator is implementing various measures to enhance investor knowledge, including using preferred media channels identified in the survey. Additionally, Sebi is setting up local offices in state capitals and other key cities to reach more investors. Pandey advised investors to invest time in understanding investments, verify information, question unrealistic promises, and conduct their own research.

Risks in Derivatives Market

Pandey also highlighted the risks associated with the derivatives market. He mentioned that studies by Sebi show over 90% of trades result in losses for retail investors who do not fully grasp the risks involved. Derivatives are intended for hedging and risk management rather than quick profits, which can be misleading.

Meanwhile, NSE’s Chairman Srinivas Injeti announced that the largest stock exchange is pursuing a public listing. This move aims to set an example for other listed companies by demonstrating transparency and accountability. Despite not being listed yet, NSE has a broad shareholder base of nearly 1.8 lakh individuals.

Injeti stated, “We are very much on that track,” referring to NSE’s plans for public listing. He added that one motivation for going public is to exemplify what NSE expects from listed companies by leading through example.

The efforts by Sebi and NSE reflect a commitment to fostering a transparent and trustworthy investment environment in India. By addressing knowledge gaps and promoting awareness, they aim to protect investors from potential frauds and ensure a stable financial market.

With inputs from PTI