SEBI-registered intermediaries who want to advertise on social media platforms such as Google and Meta will need to register on these platforms with the contact details given to the regulator, said a press release issued on March 21. The intermediaries will need to register on these platforms with the mobile number and email ID given on the regulator's intermediary portal.
In the press release, the Securities and Exchange Board of India (SEBI) said that this is being done to curb online frauds related to securities market.
The release said, "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.
Also read: SEBI proposes easing norms for stock brokers to operate from GIFT city, doing away with separate NOC
"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."
(This copy will be updated.)
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