Are Live Trading Streams Legal? Sebi Issues New Warning for Retail Investors

The Securities and Exchange Board of India (Sebi) has warned investors about the prevalence of a rising trend on social media platforms. The market regulator has said that certain individuals are hosting live broadcasting sessions where they claim to offer real-time trading strategies and immediate tips on how to take specific positions in the stock market.

The market regulator said in a release that these ‘market experts’ showcase live data, analyse ongoing price movements, and predict targets they expect the market to reach. Alongside these broadcasts, live chat features of social media platforms are also being used for the spread of unregistered investment advisory services.

The market regulator noted that these individuals often indicate that they are seasoned professionals as they detail entry and exit points, and map out strategies for market indices while simulating live execution to prove their performance.

Earlier in May 2026, the regulator mandated that historical market price data can only be shared for the purpose of investor education and awareness and only if it is accompanied by a gap of thirty days. Additionally such educational initiatives have to be ringfenced from any fee-based or monetary incentives for the participants.

A content creator engaged only in educational activities is strictly prohibited from using data from the preceding thirty days. They are also barred from indicating future price movements or providing any form of stock specific investment advice or recommendations.

What Sebi Said About Live Trading

To protect market participants, the regulator explicitly detailed how educational platforms must handle market data.

"A person engaged solely in education should not be using market price data of the preceding thirty days of any security or indicate the future price or provide advice or recommendation related to security or securities," Sebi said.

The authority also clarified the strict limitations surrounding the distribution of live feeds.

"It may be noted that live data of the market is not permitted to be shared by any entity except for orderly functioning of the securities market or for fulfilling regulatory requirements," Sebi said.

The regulator expressed deep concern over how these unauthorized streams operate online.

"It has come to the notice of SEBI that certain persons on social media platforms are offering 'live trading strategies/ real-time strategies' to provide real time tips on taking positions in the stock market," Sebi said.

What Should Investors Do?

Sebi has advised retail investors to change how they consume financial content and execute trades. The regulatory body has advised investors not to trust the sweeping claims made by these social media figures.

Additionally, the regulator urged investors to resist the temptation to base their investing decisions or market positions on the information shared by content creators during these live trading sessions. Typically, watching an individual navigate a fast-moving market in real time creates a false sense of security, which can lead to trading choices that result in financial losses.

The regulator also advised investors to only deal with intermediaries who are fully registered with Sebi. Sebi-verified professionals function under strict legal frameworks designed to protect and ensure ethical conduct. Before acting on any financial guidance, investors should independently verify the registration credentials of the service provider.

Ultimately investors need to be vigilant while trading in the securities market and view entities promising quick returns or foolproof strategies with skepticism. By not falling for unauthorised investment advice on social media, investors can save their portfolios from bad-faith actors and ensure their participation remains secure, compliant, and grounded.