The transfer is aimed toward curbing fraudulent actions within the securities market.
This determination got here after SEBI noticed a speedy enhance in frauds associated to securities markets being performed on platforms resembling YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter), Telegram, and the Google Play Store.
With rising adoption of digital communication platforms, SEBI noticed that perpetrators of such frauds are engaging victims within the identify of offering on-line buying and selling programs, seminars, giving deceptive or misleading testimonials, guarantees or ensures of assured or danger free return and so forth. via varied social media platforms (SMPs).
To defend buyers and enhance transparency, SEBI has taken steps to strengthen the conduct of registered intermediaries on these platforms.
“It has been determined in session with Social Media Platform Providers that every one SEBI registered intermediaries importing/ publishing ads on SMPPs like Google/ Meta (to start out with), shall be required to register on such social media platforms utilizing their e-mail IDs and cell numbers registered on SEBI SI Portal,” the regulator mentioned in an announcement.
Following this, these platforms will perform verification checks on the intermediaries earlier than permitting them to publish advertisements. This verification course of goals to make sure that solely reliable, verified intermediaries can promote on these platforms.
The regulator has requested all intermediaries who want to promote on SMPs to replace their contact details- particularly their e-mail ID and cell quantity – on the SEBI SI Portal by April 30, 2025.
The transfer is a part of SEBI’s efforts to curb fraudulent actions, safeguard investor pursuits, and promote a extra clear and safe securities market.
