SEBI's Action on Social Media Financial Schemes

On August 22, 2025, the Securities and Exchange Board of India (SEBI) took a specific regulatory step concerning financial schemes promoted on social media.

SEBI's Regulatory Measure

• SEBI issued an advisory directed against social media financial schemes.
• The advisory specifically warned investors about schemes linked to Foreign Portfolio Investors (FPIs).
• This action aims to safeguard investors from potential risks associated with unregulated financial advice and schemes shared online.

Analysis of Options

• Option 1 (Grant registration): SEBI did not grant registration to finance influencers; rather, it issued a warning.
• Option 2 (Create a retail investor compensation fund): The action taken was an advisory, not the creation of a compensation fund.
• Option 3 (Issue advisory against FPI-linked schemes): This matches the action taken by SEBI on the specified date.
• Option 4 (Ban all financial content): SEBI did not implement a complete ban on financial content but issued a targeted advisory.

Therefore, the action taken by SEBI was to issue an advisory against FPI-linked schemes promoted via social media.