Explained: Can social media influencers offer live trading tips? Here’s what Sebi says

The growing popularity of social media influencers has fuelled a rise in ‘live trading strategies’ and real-time market tips, with more individuals presenting themselves as trading experts and sharing entry and exit calls, price targets and trading strategies during live sessions.

The Securities and Exchange Board of India (Sebi), in a notification issued on August 17, has cautioned investors against following such live trading strategies and real-time market tips, warning that these sessions could involve unregistered investment advisory services.

The regulator said it has noticed individuals on social media platforms offering “live trading strategies/ real-time strategies” to provide real-time tips on taking positions in the stock market.

“It is observed that these live trading sessions are being viewed by a substantial number of viewers and live chats are also enabled beside the session where unregistered advisory services are being exchanged,” Sebi said.

What has Sebi said?

Citing its May 8, 2026 circular, Sebi clarified the conditions under which market price data could be shared for investor education and awareness.

According to the regulator, “market price data may be shared for investor education and awareness activities without offering any kind of monetary incentive to the participants, with a lag of thirty days.”

Sebi further said, “A person engaged solely in education should not be using market price data of the preceding thirty days of any security or indicate the future price or provide advice or recommendation related to security or securities.”

Can live market data be shared?

Sebi said live market data is not permitted to be shared by entities, except for specific purposes.

“It may be noted that live data of the market is not permitted to be shared by any entity except for orderly functioning of the securities market or for fulfilling regulatory requirements,” the regulator said.

What are live trading strategies?

According to Sebi, certain individuals on social media platforms “portray themselves as experts in the securities market” and provide detailed analysis during live sessions.

The regulator said these individuals provide guidance on “when to invest, when to exit, strategies to be followed and the positions to be taken on market indices.”

Some of these persons also claim that they trade in real time while showcasing the performance of their trades, market patterns and expected targets.

“Some of these persons claim that they trade real-time while showcasing the performance of their trades, patterns that the market is forming based on live data and the target expected to be reached,” Sebi said.

Why is Sebi concerned?

Sebi’s concern centres on the possibility of such live sessions being used to provide unregistered advisory services.

The regulator said live chats are also enabled alongside some of these sessions, “where unregistered advisory services are being exchanged.”

What should investors do?

Sebi has advised investors “to not trust claims of such persons and not to take their investment decisions on such live trading sessions.”

The regulator has also advised investors “to deal with only SEBI registered intermediaries.”

Sebi said it is issuing the press release to caution investors about “live trading strategies/ real-time strategies” being offered on social media platforms and urged them to “be vigilant while carrying out transactions in the securities market.”