SEBI’s Deep Dive: Unmasking Deep Fake Stock Tactics

The Securities and Exchange Board of India (“SEBI”) has embarked on vigilant monitoring of deepfakes and AI-powered voiceovers deployed for disseminating misinformation and misleading investors. The regulator has sought the help of the Telecom Regulatory Authority of India (“TRAI”) to counter the menace of fake investment tips being sent by unknown entities claiming to be from top domestic brokerage houses like Motilal Oswal and HDFC Securities. Notable instances of fake videos and voiceovers featuring prominent personalities include a deepfake video portraying Reliance Industries Chairman Mukesh Ambani endorsing stock tips, leveraging AI-generated voice.

In its communication, the market regulator requested TRAI to develop “special software” to restrict such mobile messages.