SEBI has observed a rise in securities market fraud on social media platforms like YouTube, Facebook, WhatsApp, and Telegram, where misleading claims and deceptive trading schemes are promoted. To enhance transparency and investor protection, SEBI has mandated that all registered intermediaries must verify their identities before advertising on social media. Initially, this requirement applies to platforms like Google and Meta. Intermediaries must register using SEBI-registered email IDs and phone numbers via the SEBI SI Portal. Social media platforms will conduct verification before allowing advertisements. SEBI has set an April 30, 2025, deadline for intermediaries to update their contact details in the SEBI SI Portal.
Securities and Exchange Board of India
PR No.14/2025
Advisory to SEBI Registered Intermediaries- Uploading advertisements on Social Media Platforms (SMPs)
SEBI has noticed a rapid increase in frauds related to securities market on various Social Media Platforms (SMPs) such as YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter), Telegram, Google Play Store, Apple Store etc.
With increasing adoption of digital communication platforms, it is observed that perpetrators of such frauds are enticing victims in the name of providing online trading courses, seminars, giving misleading or deceptive testimonials, promise or guarantee of assured or risk free return etc. through various SMPs.
In order to increase transparency in the securities market, curb fraudulent activities, protect the interest of investors and to further strengthen the conduct of SEBI Registered Intermediaries, it has been decided in consultation with Social Media Platform Providers (SMPPs) 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. These SMPPs will thereafter carry out advertiser verification of SEBI Registered Intermediaries after which, intermediaries will be permitted to upload/ publish advertisements on these platforms. Accordingly, all SEBI Registered Intermediaries interested in uploading/ publishing advertisements on these platforms are advised to update their contact details (consisting of email id and mobile no.) in the intermediary database on the SEBI SI Portal by April 30, 2025.
Mumbai
March 21, 2025
