Sebi Tightens Grip: New Rules for Advertising on Social Media

Sebi has mandated registered intermediaries to register their contact details on social media platforms to advertise, aiming to curb securities market fraud. This decision ensures that intermediaries are verified, safeguarding investor interests and enhancing market transparency.

Securities and Exchange Board of India (Sebi) announced new regulations on Friday, mandating registered intermediaries to register their contact details on social media platforms, including Google and Meta, to advertise. This move is intended to mitigate fraudulent activities within the securities market.

After observing a surge in market-related scams on platforms like YouTube, Facebook, Instagram, and others, Sebi's intervention aims to protect investors and enhance transparency. Fraudsters often lure victims by falsely promising risk-free returns or offering deceptive testimonials online.

Sebi's consultation with social media providers stipulates that intermediaries must update their contact information using Sebi's SI Portal by April 30, 2025. Platforms will then verify these details before allowing advertisements, ensuring only legitimate entities can promote their services.

(With inputs from agencies.)