SEBI has instructed registered intermediaries looking to advertise on social media platforms like Google and Meta to register on these platforms using the contact details provided to the markets watchdog, such as email ID and mobile number.
The objective behind this directive is to combat fraudulent activities in the securities market. This decision comes in the wake of SEBI noticing a surge in frauds related to securities markets on platforms like YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and the Google Play Store.
With the increasing use of digital communication platforms, SEBI has observed that fraud perpetrators are luring victims by offering online trading courses, seminars, providing misleading testimonials, and promising risk-free returns through various social media platforms (SMPs).
In an effort to protect investors and enhance transparency, SEBI is taking measures to strengthen the conduct of registered intermediaries on these platforms. The regulator has collaborated with Social Media Platform Providers to implement a verification process for intermediaries wishing to publish ads on platforms like Google and Meta.
It has been mandated that all SEBI registered intermediaries must register on social media platforms using their email IDs and mobile numbers registered on the SEBI SI Portal. This verification process aims to ensure that only legitimate, verified intermediaries can advertise on these platforms.
SEBI has set a deadline of April 30, 2025, for all intermediaries intending to advertise on SMPs to update their contact details, specifically email ID and mobile number, on the SEBI SI Portal.
Overall, this move is part of SEBI’s broader efforts to crackdown on fraudulent activities, safeguard investor interests, and promote a more secure and transparent securities market.