In a move to tackle fraudulent activities on digital platforms, the Securities and Exchange Board of India (SEBI) has introduced new guidelines requiring registered intermediaries to verify their identities before advertising on Google, Meta, and other social media platforms. Announced on Friday, this initiative aims to enhance transparency and investor protection in the securities market.
The decision follows a surge in investment scams exploiting platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and the Google Play Store. Fraudsters have been using these channels to lure investors with false promises of risk-free returns, misleading testimonials, and fake online trading courses.
SEBI stated, “It has been decided in consultation with Social Media Platform Providers that all SEBI-registered intermediaries uploading/publishing advertisements on SMPPs like Google/Meta (to start with) shall be required to register on such social media platforms using their email IDs and mobile numbers registered on SEBI SI Portal.”
Under the new compliance framework, all SEBI-registered intermediaries must sign up on social media platforms using their official contact details—including email IDs and mobile numbers—as registered with SEBI’s SI Portal. These platforms will then conduct verification checks before allowing them to publish advertisements. The regulator has set a deadline of April 30, 2025, for intermediaries to update their contact details on the SEBI SI Portal.
This move is part of SEBI’s larger effort to protect investors and maintain market integrity in the face of increasing digital fraud. By strengthening monitoring mechanisms, SEBI aims to curb deceptive marketing practices before they can cause widespread financial losses.
With digital platforms becoming a primary medium for financial promotions, the new rules are expected to make it significantly harder for fraudulent operators to advertise scams through major online platforms. SEBI continues to closely monitor the evolving digital landscape to safeguard investors and ensure a fair and transparent securities market.
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