SEBI on Friday asked registered intermediaries wishing to advertise on social media platforms like Google and Meta to register on these platforms using the contact details such as the email ID and mobile number provided to the markets watchdog.
The move is aimed at curbing fraudulent activities in the securities market.
This decision came after SEBI observed a rapid increase in frauds related to securities markets being conducted on platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and the Google Play Store.
With increasing adoption of digital communication platforms, SEBI observed that perpetrators of such frauds are enticing victims in the name of providing online trading courses, seminars, giving misleading or deceptive testimonials, promises or guarantees of assured or risk free return etc. through various social media platforms (SMPs).
To protect investors and increase transparency, SEBI has taken steps to strengthen the conduct of registered intermediaries on these platforms.
“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,” the regulator said in a statement.
Following this, these platforms will carry out verification checks on the intermediaries before allowing them to publish ads. This verification process aims to ensure that only legitimate, verified intermediaries can advertise on these platforms.
The regulator has asked all intermediaries who wish to advertise on SMPs to update their contact details- specifically their email ID and mobile number – on the SEBI SI Portal by April 30, 2025.
The move is part of SEBI’s efforts to curb fraudulent activities, safeguard investor interests, and promote a more transparent and secure securities market.
Read the original article here