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SEBI Mandates Social Media Registration for Advertisers to Combat Financial Fraud
The Securities and Exchange Board of India (SEBI) has mandated that all registered intermediaries must register their social media advertisement accounts using details from the SEBI SI Portal to enhance transparency and combat increasing financial fraud on social platforms.
Lead: The Securities and Exchange Board of India (SEBI) has issued new guidelines impacting registered intermediaries on Friday, emphasizing the need for compliance when advertising on social media platforms such as Google and Meta. Beginning immediately, all intermediaries must register using their email addresses and phone numbers from the SEBI SI Portal. This directive aims to reduce fraud in the securities market, which has surged significantly in recent years, particularly through misleading online courses and deceptive promotions.
Important Registration Requirements
– Registered intermediaries must:
– Update their contact information on the SEBI SI Portal by April 30, 2025.
– Use these updated details for social media registrations.
– Advertiser verification will be conducted by platforms before permitting any advertisements.
Growing Concerns Over Online Fraud
SEBI has recently observed a rise in fraudulent activities on social media platforms, targeting unsuspecting investors. The types of fraud include:
– Offering online trading courses with deceptive testimonials.
– Promising guaranteed returns or risk-free investments.
Social media platforms affected include:
– YouTube
– Facebook
– Instagram
– WhatsApp
– X (formerly Twitter)
– Telegram
– Google Play Store
– Apple Store
In response to this issue, SEBI has been proactively warning investors against engaging with unregulated entities that offer transactions in unlisted securities. The regulator advises:
– Avoid any transactions on unauthorized electronic platforms.
– Do not share personal information with these entities.
Market Response and Investor Awareness
Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are echoing SEBI’s warnings, emphasizing the importance of safeguarding investor interests against fraudulent schemes.
Conclusion: SEBI’s latest directive is a critical step towards enhancing transparency in advertising among registered financial intermediaries. By enforcing stricter registration protocols on social media platforms, SEBI aims to protect investors from the rapidly escalating financial fraud landscape. As this situation develops, investors are encouraged to remain vigilant and informed.
Keywords: SEBI, securities market, financial fraud, social media advertising, registered intermediaries, investor protection, online trading courses
Hashtags: #SEBI #FinancialFraud #InvestorProtection #SocialMedia #SecuritiesMarket #AdverstingRegulations
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