Everyone wants to get quick profit by investing money in stock market. Taking advantage of this greed, many people call themselves market experts on social media. If you also invest money in the stock market on the advice of such a person, then you need to be cautious immediately. Tuhin Kant Pandey, chairman of market regulator Sebi, has given a clear warning to common investors in a press conference. He termed unregistered social media influencers as a major threat to investors’ hard-earned money.

There is a scam going on in the name of membership

SEBI Chairman Tuhin Kant Pandey in his press conference mentioned how common people are being trapped by social media. There are many social media influencers who have no registration with SEBI. These people influence common people on social media. Then they entice them to join their group or special membership. People are charged huge amount of money in return for this membership. The most surprising thing is that the money taken from the investors is not actually invested in the stock market. That is, tips or investments based on which investors give their money do not reach the market and people become victims of fraud.

Cheap penny stocks are also a big threat

Not only fake experts on social media, but SEBI Chairman has also issued a stern warning about cheap shares i.e. penny stocks. Often small investors run after low-priced penny stocks. Tuhin Kant Pandey clearly stated that penny stocks are a big risk for investors. The biggest reason for this is that there are many companies listed in the stock market in which no work has been done for years. Although the company has been closed for years, its shares are still in the market. Investing money in such stocks can prove to be a straight losing deal for investors.

The regulatory process will be expedited

Preparations are underway to tighten rules to protect investors from shares of closed companies. The SEBI chairman admitted that there is a need to tighten the regulatory process in this regard. Along with this, this process of prosecution also has to be expedited, so that the listed companies which have not been functioning for years can be regulated in time. SEBI is now making its entire process faster than before.

SEBI will tighten its screws with the help of AI

SEBI has now decided to take the help of modern technology to stop the fraud that is spreading fast on social media. Chairman Tuhin Kant Pandey said SEBI is bringing strict rules to monitor social media. Artificial Intelligence (AI) is being used to complete this work quickly. Through AI, SEBI will be able to easily track all those unregistered influencers who are taking money from people in the name of membership without permission. This move by SEBI will completely block the way for fake advisors in coming days.