SEBI Issues Advisory on New Social Media Advertising Requirements for Registered Intermediaries

The Securities and Exchange Board of India (SEBI) has released an advisory about new requirements for SEBI-registered intermediaries when publishing advertisements on social media platforms.

SEBI has observed a significant increase in scams related to the securities market across digital communication platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, Google Play Store, and Apple Store, etc. These scammers often lure victims by promoting fake online trading courses and seminars, offering misleading or deceptive testimonials and promises, and giving false guarantees of risk-free or assured returns.

To increase transparency in the securities market and combat such fraudulent activities to protect investors, the SEBI has consulted with social media platform providers to implement a verification process for advertisers. Initially, providers like Google and Meta will require SEBI-registered intermediaries to register using their email IDs and mobile numbers registered on the SEBI SI Portal. Then these providers will conduct advertiser verification of SEBI-registered intermediaries, after which intermediaries will be permitted to upload or publish advertisements on these platforms.

The SEBI has advised all registered intermediaries intending to advertise on these platforms 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.