SEBI on Friday told registered intermediaries that if they want to advertise on social media platforms such as Google and Meta, they will have to register on these platforms using the same contact details, such as email ID and mobile number, which they have given to the markets regulator. This information has been received from news agency PTI.

The move is aimed at curbing fraudulent activities in the securities market. This decision was taken by SEBI when it observed that there has been a rapid increase in fraud related to the securities market on platforms like YouTube, Facebook, Instagram, WhatsApp, X (earlier Twitter), Telegram, and Google Play Store.

Fraudsters are luring people like this.

With the increasing use of digital communication platforms, SEBI found that such fraudsters are luring people through various social media platforms (SMPs) in the name of online trading courses, seminars, misleading or false testimonials, promises of fixed or risk-free returns, etc.

To enhance investor protection and transparency, Sebi has taken steps to strengthen the conduct of registered intermediaries on these platforms. "After discussions with social media platform providers, it has been decided that all Sebi registered intermediaries uploading/publishing advertisements on SMPPs such as Google/Meta (to begin with) will have to register on these social media platforms with their email ID and mobile number registered on the Sebi SI portal," the regulator said in a statement.

Next, these platforms will conduct verification checks of the intermediaries to ensure their legitimacy before allowing them to publish advertisements. The aim of this verification process is to ensure that only legitimate and verified intermediaries can advertise on these platforms.

SEBI has asked all intermediaries to update their contact details - especially email ID and mobile number - on the SEBI SI portal by April 30, 2025, if they wish to advertise on SMPs.

This move is part of SEBI's efforts aimed at preventing fraudulent activities, protecting the interests of investors, and making the securities market more transparent and secure.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.