SEBI Brings Verification For Stock Market Ads On Social Media

The market regulator, the Securities and Exchange Board of India, has released an advisory asking all its registered intermediaries to register with social media platforms using their SEBI Intermediary Portal-linked email IDs and mobile numbers before uploading advertisements. These social media platforms will then conduct advertiser verification of SEBI-registered intermediaries before allowing them to publish advertisements.

This step, taken in consonance with social media platform providers, is to ensure advertiser verification before intermediaries are allowed to publish advertisements on platforms like Google and Meta.

“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 the SEBI SI Portal,” the advisory stated.

Intermediaries interested in advertising on these platforms must update their contact details in the SEBI intermediary database by April 30, 2025.

This comes after the regulator observed a rise in securities market-related frauds on various platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, Google Play Store, and Apple Store. SEBI also noted that fraudsters are luring victims by offering online trading courses, seminars, misleading testimonials, and promises of assured or risk-free returns.