SEBI Partners Google to Verify Apps and Track Finfluencers Using AI to Combat Financial Fraud

Google to verify apps, help track finfluencers: Sebi

Mumbai: The Securities and Exchange Board of India (Sebi) has asked Google to leverage artificial intelligence tools to track finfluencers who are sidestepping regulations. "We have also requested Google to actively take up their own AI measures, and we will help them develop it so they can track those influencers who transgress our regulations," Sebi chairman Tuhin Kanta Pandey said at the launch of the verified app label initiative. "We must develop tools according to our laws and regulations which will help kick such people out of the cyber space, which they are destroying through social media platforms and creating so much of a problem for the community," he said. The regulator is actively monitoring digital platforms for misleading investment-related content. "More than 1.3 lakh instances of such content have been escalated to platforms for takedown. Around 66 cases of fake trading apps have been flagged to app stores and taken down," the Sebi chief said. He added that an API-based framework is in place to ensure that only verified, registered intermediaries can run advertisements on platforms such as Google and Meta. On Wednesday, Sebi, in collaboration with Google, launched a verified badge on Google Play for stock trading apps offered by Sebi-registered entities. "The proliferation of fraudulent trading apps has posed a serious threat to retail investors, with scammers impersonating genuine apps that eventually deceive gullible investors into believing that their investments made through such fake apps are directed to the regulated securities market," Sebi said in a statement. Currently, over 600 apps have been verified, and the facility will soon be extended to apps of other intermediaries. "Today, for many investors, the market begins on a screen. It begins with an app. But where access becomes digital, so does the risk. Fake apps are now a serious threat and can cause irreparable financial harm," Pandey said. "The fraud is simple. Fraudsters lure investors with promises of assured returns. Investors are convinced to install apps that closely resemble those of Sebi-registered intermediaries. By the time suspicion arises, investors have already lost their money." Sebi will also sign a memorandum of understanding with the Ministry of Electronics and Information Technology (MeitY) and the Department of Telecommunications (DoT) to strengthen action against cyber fraud.

SEBI Partners Google to Curb Fake Trading Apps, Finfluencers

-- SEBI press release on verified label for stock trading apps -- Address by SEBI chairman at launch of Verified App Label The Securities and Exchange Board of India (SEBI) has partnered with Google to introduce "verified" badges on the Play Store for all stock trading apps in India operated by entities registered with the capital markets regulator. The market watchdog has also asked Google to leverage artificial intelligence (AI) to track finfluencers, who are flouting its guidelines. Why this matters: Until now, scammers could easily upload cloned and malicious versions of stockbroking apps such as Zerodha, Groww, and Angel One to the Google Play Store. While fraudsters trick users into making investments, it never really ends up in the regulated securities market. With SEBI and Google launching a verified badge for registered stockbrokers, this adds a new layer of protection in the investment space. Furthermore, the sheer volume of unregistered finfluencers misusing social media platforms to mislead investors is a cause of concern. The Ministry of Finance told the Parliament on March 23 that SEBI has flagged 1.33 lakh misleading social media posts related to the securities market in the ongoing fiscal year alone as of February 2026. Armed with Google's AI tools and its in-house tool 'Sudarshan' (launched in 2025), the regulator can track violations in the digital space in real time and remove misleading posts by finfluencers.