Meta’s financial ads go SEBI-verified: A leap toward safer investment advertising?
Meta requires all advertisers, even those based outside India, running investment-related campaigns aimed at Indian users to provide SEBI registration details. Storyboard18 consulted legal experts, ASCI, and content creators to evaluate the policy’s benefits and potential challenges.
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It's been just over ten days since Meta rolled out a sweeping policy on July 31, 2025, aimed at reining in unregulated "finfluencers" and boosting transparency in financial advertising.
Under the update, all advertisers—whether based in India or abroad—running investment-related campaigns targeting Indian audiences must complete SEBI verification. This includes submitting SEBI registration details: the organization’s name, SEBI registration number, and contact location, all of which will be displayed publicly on the ad along with mandated disclaimers.
For those exempt from SEBI registration, such as financial educators or trainers, Meta requires alternative verification. Individuals must upload a government-issued ID, while organizations must submit business documents. Although strictly educational or skill-building content may not need SEBI verification, it still demands the alternate verification pathway.
Once verified, the advertiser’s credentials will be visibly displayed on the ad and retained in Meta’s Ad Library for up to seven years.
This change builds on earlier directives from 2023, when the Advertising Standards Council of India (ASCI) mandated that finfluencers in the BFSI domain register with SEBI and display their registration number, name, and qualifications. The guidelines also required additional credentials—such as chartered accountancy, company secretaryship, or IRDAI licensing—for anyone offering investment advice.
Yet, even with these safeguards, financial scams persisted. In 2023, SEBI cracked down on Mohammed Nasiruddin Ansari—popularly known as the “Baap of Chart”—for operating without SEBI registration and misleading investors into buying his courses. That year also saw SEBI penalize and suspend YouTuber and options trader PR Sundar for a year due to violations of investment adviser norms.
Earlier this year, ASCI clarified that general financial information—like saving tips or insurance benefits—can be shared by finfluencers and health influencers without professional qualifications. However, any technical or product-specific recommendations (such as SIPs, funds, or stock suggestions) require SEBI registration or equivalent credentials.
Now, this begs the question: How will Meta’s policy curb unregulated finfluencers or keep financial scams at bay?
Manisha Kapoor, CEO and secretary-general, ASCI, hailed Meta’s new policy as a significant step forward in building trust and safeguarding users seeking financial guidance online. She emphasized that ASCI remains vigilant in monitoring influencer activity and responding to complaints—warning that the proliferation of scams necessitates coordinated regulatory enforcement with real consequences.
Read More: Finfluencers face 60% decline in brand deal rates, drop in followers as SEBI tightens rules
Content creator Ankur Warikoo—widely known for his work on personal finance, entrepreneurship, and life lessons—welcomed the move as “the right decision,” noting that it promises to elevate the quality and reliability of financial advertising.
Danny Nathani, head of brand, marketing & communication, Mirae Asset Sharekhan, also applauded Meta’s policy, saying it was a move in the right direction that stands to benefit retail customers most.
He observed that while influencers played a pivotal role post‑COVID‑19 in attracting new participants to financial markets, bringing them under regulatory oversight—first via SEBI and now reinforced by Meta—clinches the path toward healthier category growth, protecting customers from dubious actors.
Nathani expects the move to yield long-term benefits like significantly curbing scams that misuse trusted financial brands, even if Meta might see some short-term impact on ad revenue. Importantly, he believes genuine educators will flourish under the new rules while those with malicious intent will be constrained.
What are the challenges?
Tanu Banerjee, partner at Khaitan & Co, cautioned that enforcement remains inconsistent, as many finfluencers navigate grey areas—offering courses, tips, or brand collaborations subtly. She warned, “Until platforms actively moderate this, loopholes will persist if the ecosystem continues to reward reach over regulation, enforcement will remain a challenge, leaving investors vulnerable.”
Pooja Rao Putrevu, founder of Annex Legal, highlighted a critical gap: the policy excludes unpaid content, allowing financial influencers to leverage it as a loophole. She acknowledged that it's a promising step, but incomplete. She added, “Although the policy today is not applicable to all kinds of securities and investment‑related content, it is a welcome step towards a healthy tomorrow.”
Warikoo echoed this concern, noting the policy only governs paid ads, leaving organic content largely unrestricted.
Mirae Asset ShareKhan’s Nathani added that ambiguity persists over what qualifies as “advice”—since SEBI's definition extends beyond explicit terms like “buy” or “sell.” Thus, finfluencers aiming to educate should prioritize building community and offer clear educational value; those venturing into advisory territory should comply fully as independent financial advisors.
Banerjee also warned of potential overreach—where educational or journalistic content might get mistakenly flagged, making entry into the formal advisory space harder for honest creators still in the process of formalizing. She stressed that SEBI’s goals will only be achieved if platforms also scrutinize organic, viral content—like reels, threads, and pseudo‑educational posts.
Putrevu added that well-intentioned educators might be unjustly filtered out. She also raised the risk of migration to unregulated platforms like Telegram or WhatsApp—where Meta’s rules don’t apply—introducing confusion among retail investors.
Personal finance creator Anushka Rathod recalled the confusion brands faced when SEBI first advised stopping collaboration with unregistered finfluencers—clarity eventually emerged that only content around securities market or IPO promotions was affected, thus sparing creators like her whose content wasn’t speculative.
Putrevu underscored risks of false compliance claims—where influencers might forge credentials or misuse SEBI numbers. She advocated for a robust, real-time verification system, noting how disclaimers like “not financial advice” can mask non-compliance, especially on free platforms beyond regulation.
ASCI’s Kapoor also emphasized that platforms must continually innovate tools to detect and prevent fraudulent content, keeping pace with evolving formats and bad actors.
Warikoo also pointed out gaps in Meta’s policy: there’s no clarity on whether SEBI numbers will be cross-checked or how complaints can be lodged or appealed—critical elements often missing at large platforms.
To strengthen oversight, Putrevu proposed that platforms maintain a whitelist of verified SEBI-registered professionals eligible to run financial ads, alongside a dynamic blacklist of repeat violators—both updated regularly.
