SEBI mandates advertiser verification on social media to curb investment frauds

Market regulator Securities and Alternate Board of India (Sebi) on Friday directed all Sebi registered intermediaries importing or publishing commercials on social media platforms (SMPs) like Google and Meta, to register on these platforms utilizing their e-mail ids and cellular numbers as registered on SEBI SI Portal.

These social media platform suppliers will then perform advertiser verification of Sebi registered intermediaries after which the intermediaries will probably be permitted to add or publish commercials on these platforms.

All Sebi registered intermediaries who need to add/publish commercials on these platforms could have to replace their contact particulars within the middleman database on the SEBI SI Portal by April 30, 2025, a media launch revealed by the regulator stated.

The market regulator in an advisory to traders stated that it has observed a speedy enhance in frauds associated to securities market on numerous social media platforms (SMPs) the place the perpetrators of those frauds are attractive victims within the title of offering on-line buying and selling programs, seminars, giving deceptive or misleading testimonials, promise or assure of assured or danger free return and so on.

The SMPs in query are YouTube, Fb, Instagram, WhatsApp, X (beforehand Twitter), Telegram, Google Play Retailer, Apple Retailer and so on.

Sebi has been taking measures to inform traders of the rising menace within the digital house. Not too long ago it cautioned traders towards digital platforms and web sites that are facilitating transactions in unlisted securities of public restricted firms. It beneficial traders to not have interaction with them.Sebi had stated that any engagement with the unregulated entities is a violation of Sebi guidelines.”Traders are suggested not to conduct any transactions on such digital platforms or share any delicate private particulars on the identical as these platforms are neither approved nor acknowledged by SEBI,” a Sebi launch issued in December stated.

In the meantime, exchanges NSE and BSE have additionally been issuing warnings to traders to be cautious of the fraudulent components.

(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)