SEBI Draws Attention to Unsafe Advice Channels and Reminds Investors of Existing Protections
SDG 8: Decent Work and Economic Growth | SDG 10: Reduced Inequalities
Institutions: Ministry of Finance | Securities and Exchange Board of India (SEBI)
The address delivered by Shri Tuhin Kanta Pandey, Chairman of SEBI, at the Regional Seminar on Investor Awareness in Puducherry on November 29, 2025, underscored that financial literacy and investor awareness are crucial for securing the economic prosperity of citizens at all life stages. India’s investment landscape is expanding rapidly, with over 21 crore demat accounts and nearly 13.6 crore unique investors as of October 2025. This growth, which includes young professionals and increasing numbers of women investors, signals a healthy shift from traditional savings to structured investment avenues, supported by the mutual fund industry’s assets exceeding Rs. 80 trillion.
However, the address highlighted that this expansion must be accompanied by comprehension. The Investor Survey 2025 reveals a critical knowledge gap: only 36% of investors possess moderate or high market knowledge, and a high 62% rely on non-registered advisers like social media or friends, exposing them to risks from online scams and fraudulent apps.
To counter this, SEBI has implemented several protective measures, including the validated UPI handle framework, SEBI Check for verifying intermediaries’ bank accounts, and integration of holdings with Digilocker. Complaint redressal has been transformed by SCORES 2.0 and the SMART ODR system, with user satisfaction near 90%. Furthermore, SEBI conducted over 50,000 awareness programs across nearly 90% of districts in 2024–25 and is collaborating with the Ministry of Panchayati Raj (MoPR) to train about 2.5 lakh panchayat-level representatives, fulfilling the vision of building an informed investor culture benefitting every household.
Policy Relevance: The focus on strengthening technology-driven protection mechanisms and linking investor awareness to grassroots governance (MoPR collaboration) is crucial for safeguarding the dignity and capital of new investors, making the market both confident and equitable as India pursues sustainable financial development.
What is the SCORES 2.0/SMART ODR mechanism?→ SCORES 2.0 (SEBI Complaints Redressal System) and SMART ODR (Online Dispute Resolution) are modernized platforms introduced by SEBI to transform investor complaint redressal. They feature auto-routing, transparency in escalation, and faster resolution timelines, affirming that accessible resolution strengthens investor confidence and trust in the market ecosystem.
Relevant Question for Policy Stakeholders: How will SEBI ensure that its new technology-based safety mechanisms are effectively understood and utilized by the 62% of investors currently relying on informal social media recommendations?
Follow the full news here: Financial Empowerment Through Awareness – Building Confidence in India’s Investing Journey