If you scroll through social media these days, chances are you’ve seen ads for stock market “gurus” promising quick profits, or trading apps that look too good to be true. At the same time, TV anchors and so-called experts keep dishing out stock tips with little accountability. India’s market regulator, SEBI, has been trying hard to tackle this mess. But scamsters are getting smarter, technology is evolving fast, and many retail investors simply don’t know how to spot the traps. Let’s break down the three biggest problems.
The Rise of Stock Market Educators
The number of demat and trading accounts in India has exploded. Naturally, stock market education has become a booming business. Self-proclaimed educators use flashy ads, fancy certificates, and live classes to attract beginners. They promise:
- No-risk trading
- Easy intraday profits
- Buy today, sell tomorrow strategies
- Guaranteed monthly income
The reality? Most of these promises are misleading. Some even turn their classes into entertainment—remember Avdhut Sathe’s Titanic-style pose with his students? It might look funny, but the impact is serious. Many investors lose money chasing these dreams.
The bigger question is: why is the private sector filling this gap? Institutions like NSE Academy and NCFM have official courses, but they’re often boring, outdated, and fail to connect with learners. Meanwhile, private educators polish their content, make it engaging, and build cult-like followings. In fact, when some of these trainers “recommend” a stock during practice sessions, the sudden demand from their students is enough to move the share price!
If we want to curb this trend, stock exchanges and regulators need to step up with modern, engaging, and reliable educational platforms.
TV Analysts and the Disclaimer Drama
Turn on a business channel and you’ll see a parade of stock tips, usually followed by a small disclaimer. But here’s the catch:
- Many TV analysts don’t trade themselves.
- Some may have tipped their private clients before going public.
- A few are rewarded by promoters or brokers to talk up certain stocks.
Even brokerage research reports are sometimes part of the game, helping promoters “unlock value” by hyping shares. This creates a dangerous nexus—consultants, brokers, TV anchors, and analysts all playing together.
SEBI has recently cracked down on names like Sanjiv Bhasin and Avdhut Sathe, which is a good step. But these are not isolated cases; the problem runs deeper and requires a systemic clean-up.
The Threat of Fake and Clone Trading Apps
The third and perhaps scariest menace is fake trading apps. They look exactly like popular platforms. Investors can “buy” and “sell” shares, but the trades are completely fake. Even the demat account is fake. When users try to withdraw their money, they realize they’ve been conned.
Even legitimate apps are not free from issues. Many are built on TradingView’s backend, which means they churn out similar stop-loss levels and targets. When thousands of users act on the same signals, stocks can suddenly jump or crash. And let’s not forget—these platforms have access to real-time investor behavior, which raises its own safety questions.
As fintech innovations grow, keeping investors safe will only get tougher.
What Needs to Change
So, what’s the way forward? A few things stand out:
- Better education – NSE, BSE, and SEBI must create practical, engaging, and trustworthy learning platforms.
- Smarter monitoring – TV anchors and analysts should face real-time scrutiny to prevent abuse.
- A secure super app – Investors need a single, regulated, and safe trading platform instead of relying on a patchwork of apps.
Final Thoughts
The stock market is already risky. Add misleading educators, compromised analysts, and fake apps, and the risk multiplies. SEBI has taken some bold steps, but much more needs to be done. The time is ripe for stronger regulation, smarter technology, and above all—credible alternatives that investors can trust.
Until then, remember: if someone promises “guaranteed profits” in the stock market, it’s probably too good to be true.
