SEBI Directs Intermediaries to Use Registered Contact Details for Advertising on Social Media Platforms
News Mania Desk / Piyal Chatterjee / 22nd March 2025
On Friday, SEBI instructed registered intermediaries that want to advertise on social media platforms like Google and Meta to register on these platforms using the contact information, including the email ID and mobile number submitted to the market regulator.
The action intends to reduce deceitful practices in the securities market.
This choice followed SEBI’s observation of a swift rise in frauds associated with securities markets taking place on platforms like YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter), Telegram, and the Google Play Store.
As the use of digital communication platforms rises, SEBI noted that fraudsters are luring victims by offering online trading courses, seminars, and using misleading testimonials, promises, or guarantees of assured or risk-free returns, primarily via various social media platforms (SMPs).
To safeguard investors and enhance transparency, SEBI has implemented measures to bolster the behavior of registered intermediaries on these platforms.
“It has been decided in consultation with Social Media Platform Providers 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,” the regulator said in a statement.
Subsequently, these platforms will perform verification checks on the intermediaries prior to permitting them to post ads. This verification process seeks to guarantee that only authorized and verified intermediaries may advertise on these platforms. The regulator has requested that all intermediaries wanting to advertise on SMPs update their contact information—namely their email ID and mobile number—on the SEBI SI Portal by April 30, 2025.
This action is part of SEBI’s initiatives to reduce fraudulent practices, protect investor interests, and encourage a more transparent and secure securities market.
