SEBI mandates identity verification for intermediaries advertising on social media

The Securities and Exchange Board of India (SEBI) has announced new guidelines requiring registered intermediaries to verify their identities before advertising on platforms like Google and Meta. This move, disclosed Friday, aims to combat rising fraudulent activities targeting investors on digital platforms.

SEBI’s directive follows a surge in scams conducted via YouTube, Facebook, Instagram, WhatsApp, X, Telegram, and the Google Play Store, where scammers lure investors with false promises and deceptive content. The regulator stated that intermediaries must register on social media platforms using email IDs and mobile numbers already registered with SEBI’s SI Portal.

The new rules mandate that social media platforms verify these contact details before allowing intermediaries to publish advertisements. This initiative is designed to ensure that only legitimate entities engage in online promotional activities.

SEBI has set an April 30, 2025, deadline for intermediaries to update their contact information on the SEBI SI Portal. This measure is part of SEBI’s broader strategy to enhance investor protection and maintain market integrity.

By closely monitoring digital platforms, SEBI seeks to curb deceptive marketing practices that can cause significant financial harm. The regulator’s efforts are expected to make it more difficult for fraudulent operators to advertise schemes on major online platforms.