Crackdown on ‘furus’ starts: Meta mandates SEBI verification for investment ads

To prevent frauds in securities market, Meta will ask for verification before placing the advertisements from July 31st

Meta has mandated advertiser verification for all securities and investment-related ads that target Indian users starting from July 31 in a major crack down on fake market advisors and investment gurus, also known as 'furus'.

As part of updated terms of service announced on June 26, Meta—the parent firm of Facebook, Instagram, WhatsApp, and Messenger—said all advertisers running investment ads in India, including global campaigns aimed at Indian audiences, must verify the person or entity benefiting from and paying for the ad by submitting valid SEBI registration details.

This includes the organisation’s name, SEBI registration number and registered email and phone number. Meta will send a verification code to the provided contact for authentication. The SEBI registration number, organisation name, and location will be publicly displayed on the ad as beneficiary and payer, alongside custom disclaimers created during ad setup.

Earlier this year, following prolonged deliberation and a due consultation process, the capital market regulator collaborated with digital platforms to effect verification of financial advisors in a bid to enhance transparency and curb fraud by unscrupulous finfluencers.

Meta said advertisers will get at least one month to complete the verification, with the feature expected to be fully available by July 28. Ads active before July 31 do not need to be edited, provided the advertiser account is verified.

For those claiming exemption from regulator registration—such as financial educators or trainers—Meta has introduced alternate verification methods. Individuals must submit at least one government-issued ID, while organisations need to upload relevant business documents. The verified identity will still be disclosed on the ads.

Meta clarified that ads related to financial education, skill-building, or training may not require SEBI verification.

"Meta verifying SEBI credentials was long due, I demand that the same thing should be done by Google for its YouTube channel too. In fact both META and Google aided with inputs from SEBI should remove all previous shorts, reels and videos which are violative of SEBI guidelines and end up misguiding investors towards loses". said, advocate (Dr.) Prashant Mali , Cyber Law Expert. He was frequently advocationg for this verification.

The move follows a March 21 press release from SEBI urging all SEBI-registered intermediaries advertising on social platforms to register their verified contact details with the regulator. The regulator flagged a spike in securities-related frauds on platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, Google Play Store, and Apple App Store.

Meta stated the policy aims to prevent fraud, impersonation, and enhance consumer safety, and added that similar requirements could extend to other financial product categories in future.

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