Watching live stock market sessions on YouTube and Instagram has become very common. Many content creators claim to be market experts and give real-time trading advice.
They tell viewers which stocks to buy or sell, when to enter or exit a trade, and what price targets to expect.
Some creators also showcase their profits and winning trades to attract more viewers. During these live sessions, thousands of investors follow their advice and discuss trading ideas in the live chat.
However, market regulator SEBI has warned investors not to blindly trust such tips.
Many Advisors May Not Be Registered
SEBI has said that some people offering stock market advice on social media may be providing investment advisory services without proper registration.
The regulator has made it clear that anyone giving investment advice must be registered with SEBI.
Investors should avoid making investment decisions based only on claims, trading strategies, or profit screenshots shared by social media influencers.
New Rules on Market Data
SEBI has also introduced rules on how market data can be used for educational content.
Under a circular issued in May, market data can be shared only if it is at least 30 days old. Educational content should not include future price predictions or give buy and sell recommendations for any stock.
What Should Investors Do?
SEBI advises investors to be careful before following stock market tips shared on social media.
Instead of relying on YouTubers or Instagram creators, investors should seek advice only from SEBI-registered investment advisors or trusted financial institutions.
Before acting on any trading recommendation, always check whether the person giving the advice is registered with SEBI. A few minutes of verification can help investors avoid costly mistakes.
