On Friday, the Securities and Exchange Board of India (SEBI) issued new guidelines for registered intermediaries interested in advertising on social media platforms like Google and Meta. These intermediaries are now required to register using the contact details, including an email address and mobile number, submitted to SEBI.
This initiative is designed to combat the rising incidence of fraud within the securities market.
The decision follows SEBI’s observations of a notable surge in fraudulent activities connected to the securities market, particularly on platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and the Google Play Store.
With the proliferation of digital communication channels, SEBI noted that fraudsters are luring potential victims by offering online trading courses, seminars, and making misleading claims about guaranteed returns, thereby exploiting various social media outlets.
In order to enhance investor protection and promote transparency, SEBI is taking significant measures to regulate the conduct of registered intermediaries using these platforms.
In a statement, SEBI explained, “In consultation with Social Media Platform Providers, it has been decided that all SEBI registered intermediaries who wish to upload or publish advertisements on platforms like Google and Meta must register using the email IDs and mobile numbers that are registered on the SEBI SI Portal.”
Subsequently, these social media platforms will perform verification checks on the intermediaries to ensure that only legitimate and verified entities are permitted to advertise.
Furthermore, SEBI has mandated that all intermediaries intending to advertise on social media platforms update their contact information—specifically their email address and mobile number—on the SEBI SI Portal by April 30, 2025.
This initiative is part of SEBI’s broader strategy to reduce fraudulent activities, protect investor interests, and foster a more transparent and secure environment in the securities market.
