Neutral impactStocks
Sebi cautions investors against social media live trading tips and unregistered advisory services
Economic Times 2 hrs ago·18 Aug 2026, 1:10 am
Sebi has issued a warning to retail investors about the risks associated with following 'live trading' tips shared on social media platforms. The market regulator cautions that many accounts offering real-time stock recommendations are actually unregistered investment advisory services. These platforms often portray individuals as market experts to gain trust, but they frequently operate outside the law.
This matters to investors because trading based on unverified, real-time advice from unregulated sources carries significant risk. Sebi strictly prohibits the sharing of live market data for the purpose of giving investment advice. While the regulator allows the use of delayed market data for educational purposes, real-time tips can lead to poor investment decisions and financial loss.
Investors should be cautious and verify the credentials of any financial advisor before acting on their suggestions. It is advisable to rely on SEBI-registered entities and conduct your own research rather than following impulsive tips from social media influencers.
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- Category: Stocks.
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