62% investors follow finfluencers. Sebi is using AI to hunt down fake tips and fraud

The market regulator has operationalised Project SUDARSAN, an AI-powered surveillance platform designed to monitor unauthorised digital activity and detect content that could mislead investors. Project SUDARSAN, which stands for Surveillance of Unauthorised Digital Activity via Real-time Scanner for Anti-fraud, is an AI-powered intelligence platform.

The system uses what Sebi describes as advanced multimodal AI. That means it can analyse different forms of information at the same time, including spoken language, visual cues and contextual intent.

What Happened

It can also analyse content in regional languages. The system combines these signals with behavioural and regulatory parameters and assigns risk scores to the content it identifies.

• Sebi said that since Project SUDARSAN began in November 2025, it has identified more than 20,000 instances of fraudulent content and posts across social media.

• It says the 62% finding on finfluencer influence highlights the risks posed by people operating without accountability or verified performance data.

• The 62% figure becomes more important when viewed alongside Sebi's wider Investor Survey.

Key Details

It then generates structured alerts that can be examined for possible regulatory action. One of the biggest risks for retail investors is that financial content on social media can look credible even when the person behind it is not authorised to provide.

• The survey covered more than 90,000 households across urban and rural India and examined how people move from awareness of securities products to actual participation.

• It found that 63% of Indian households, or approximately 213 million households, are aware of at least one securities product, including mutual funds, shares and bonds.

• But only 9.5%, or around 32.1 million households, actually invest in these markets.

Why It Matters

A post promising guaranteed returns, for example, can be presented as an investment opportunity rather than an obvious scam. Similarly, someone can use fake credentials or impersonate a regulated entity to create the impression that the advice or investment product is legitimate.

• The survey found that 74% of non-investors cite the complexity of products and a lack of understanding as barriers.

• Another 73% are concerned about potential losses, while 51% have low trust in financial institutions and transparency.

What Reports Say

Coverage of the story so far points to:

• Sebi's survey found that 80% of respondents preferred short-form videos as a way of learning, while 69% preferred social media.

• Regional languages were also in strong demand, with 47% preferring regional-language content and another 47% preferring Hindi.

• Continued reporting by India Today as more details emerge