The Securities and Exchange Board of India (SEBI) has formally communicated with major social media platforms and internet search engine providers, urging them to implement strong mechanisms to combat the misuse of their services for fraudulent investment activities. This proactive step is in line with a global call to action issued by the International Organization of Securities Commissions (IOSCO) on May 21, 2025, which stressed the necessity for platform providers to reduce the risk of financial harm to investors. To decisively address these challenges in the Indian market, SEBI has called for two key measures: implementing Mandatory Advertiser Verification to ensure only SEBI-registered entities can advertise investment products and services; and introducing a distinct label or Verified Status for authentic, regulated trading applications on app stores. SEBI also re-advised investors to exercise extreme caution by verifying the registration of any entity before investing, only using authentic trading apps of SEBI-registered intermediaries, and utilizing secure payment platforms like “Validated UPI Handles” and the “SEBI Check” platform for investor payments. This initiative reaffirms SEBI’s drive to enhance investor protection through greater industry collaboration.
Securities and Exchange Board of India
PR No.69/2025
SEBI Intensifies Efforts to Combat Online Investment Scams, Calls for Greater Collaboration from Social Media Platforms
In an effort to enhance investor protection, SEBI has formally communicated with major social media platforms and internet search engine providers, urging them to implement robust mechanisms to prevent the misuse of their platforms for fraudulent activities.
This initiative aligns with the global call to action by the International Organization of Securities Commissions (IOSCO). In its statement on May 21, 2025, IOSCO highlighted the critical role of platform providers in combating online harm and urged them to enhance efforts to reduce the risk of financial harm to investors.
SEBI supports IOSCO’s recommendations and to address these challenges decisively, SEBI has called upon the platforms to immediately prioritize and fast-track the following measures for the Indian market:
- Mandatory Advertiser Verification in securities market domain: Implementing a verification process to ensure that only SEBI-registered entities can advertise investment products and services.
- Verified Status through clear labelling of Registered Intermediary Apps: Introducing a distinct label for authentic, regulated trading applications available on app stores to help investors differentiate them from fraudulent apps.
SEBI again advises investors to exercise extreme caution –
1. Verify registration of entities before investing at
https://www.sebi.gov.in/intermediaries.html
2. Carry out transactions only through authentic trading apps of SEBI registered intermediaries after verification at
https://investor.sebi.gov.in/Investor-support.html
3. Use “Validated UPI Handles” (“@valid” UPI IDs of SEBI-registered investor-facing intermediaries) and “SEBI Check” platform by visiting https://siportal.sebi.gov.in/intermediary/sebi-checkor through Saarthi app, for secure investor payments (refer Press Release No. 64/2025)
Mumbai
November 06, 2025
