SEBI issued an interim order on May 22, 2026, addressing unauthorized stock recommendations on social media platforms. The order targets entities providing investment advice without proper registration under SEBI (Investment Advisers) Regulations, 2013. Such recommendations manipulate retail investors and create artificial demand for specific scrips. SEBI has prohibited these entities from accessing securities markets and frozen their trading accounts. The order aims to protect retail investors from fraudulent advisory services and maintain market integrity through regulatory enforcement.

This interim order represents SEBI's crackdown on unregulated financial influencers who exploit social media to manipulate stock prices through misleading recommendations. Under SEBI regulations, investment advisers must register and comply with strict disclosure norms, but many social media influencers bypass these requirements while providing stock tips to retail investors. These unregistered advisers often engage in pump-and-dump schemes, recommending stocks they hold positions in, then selling when prices rise due to follower purchases. The practice creates artificial volatility, misleads retail investors, and undermines market integrity. SEBI's enforcement action includes freezing bank and trading accounts, prohibiting market access, and directing disgorgement of illegal gains. This order follows similar actions against YouTube channels and Telegram groups providing unauthorized stock tips. The regulatory focus reflects growing concern over retail investor protection as social media influence on stock markets increases. SEBI emphasizes that only registered investment advisers can provide personalized investment advice, and investors should verify credentials before following any recommendations. This enforcement strengthens SEBI's investor protection mandate while ensuring compliance with securities law.