Following live trading strategies on social media? Sebi has a warning for you

Sebi has warned investors against relying on live trading strategies and real-time market tips shared on social media platforms, saying such sessions may involve unregistered advisory services. In a release, the market regulator said some persons on social media are offering live trading strategies and real-time strategies to give real-time tips on taking positions in the stock market.

These sessions are being watched by a large number of viewers, with live chats enabled alongside the videos where unregistered advisory services are being exchanged. Sebi said such persons often present themselves as experts in the securities market and provide detailed views on when to invest, when to exit, what strategies to follow and what positions to take on market indices.

Some of them also claim to trade in real time while showing the performance of their trades, market patterns based on live data and targets expected to be reached, the regulator said.


The warning comes after Sebi’s May 8 circular on the use of market price data for investor education and awareness. Under that circular, market price data can be shared for investor education only with a lag of 30 days and without offering any monetary incentive to participants.

Sebi said a person engaged only in education should not use market price data of the preceding 30 days of any security. Such a person also should not indicate future prices or provide advice or recommendations related to any security or securities.

The regulator also said live market data is not allowed to be shared by any entity, except for the orderly functioning of the securities market or to meet regulatory requirements.

The latest caution is aimed at retail investors who follow social media traders, finfluencers and online market educators for stock and index trading calls. Sebi’s concern is that real-time trading videos can easily move from education into advice, especially when the person running the session tells viewers when to enter, exit or take positions.

The risk is higher in live chats, where viewers may ask for instant calls and unregistered persons may respond with trading advice. Such advice may not come with proper disclosures, risk warnings or Sebi registration.

Sebi advised investors not to trust claims made by such persons and not to base their investment decisions on live trading sessions. It also asked investors to deal only with Sebi-registered intermediaries.

The regulator said it is issuing the press release to caution investors about live trading strategies and real-time strategies being offered on social media platforms, and asked them to remain vigilant while carrying out transactions in the securities market.