Sebi Crackdown On Finfluencers: Meta Introduces New Rules For Securities, Investment Ads

Sebi Crackdown On Finfluencers: The Securities and Exchange Board of India (Sebi) has been tightening its vigilance over finfluencers.  This increased vigilance comes amid the growing use of social media by unregistered investment advisors and self-styled gurus dishing out investment advice. Social media platforms, such as Meta have also taken cognizance of such instances of creators giving unregulated advice. In a blog post dated June 26, 2025, Meta introduced new rules for all securities and investment related ads which target Indian users.

How Does Meta’s Policy Work

Meta announced its new policy on June 26 for influencers who promote securities and investment products to Indian audiences. Accordingly, advertisers will now be required to disclose the entity benefiting from the advertisement. Additionally, influencers will also have to mention the entity which is paying for the advertisement, and submit their Sebi registration details. The verified name, Sebi registration number, and location of the entity will be shown at the end of the advertisement along with relevant disclaimers.

Timeline For Meta’s New ‘Sebi’ Filter

Meta mentioned in its blog that the compliance will be enforced after July 31, 2025. However, the deadline will depend on the advertiser’s eligibility to set the beneficiary and payer of the advertisements. The social media giant added that advertisers will receive a notification informing them about their eligibility to complete the verification. The company added that the verification process began on June 26 and will be available to 100 per cent of all eligible advertisers globally by July 28. The company urged advertisers to complete the verification process within a period of one month from the date they become eligible to do so.

Verification For Sebi Registration Exempt Advertisers

Meta also mentioned that those advertisers and entities which are exempt from Sebi registration will be able to opt for alternative verification options. Such individuals will be required to provide a government-issued ID. However, registration-exempt organisations will have to provide business documents for verification.  Registration exempt ads include ads which are only focused on financial education, training or skill enhancement. Notably, advertisements which will go live prior to the July 31, 2025 deadline will not be edited if the advertiser’s account has been verified in-line with the new guidelines.

What Prompted Meta’s New Policy

Retail participation in India is rising, as new investors join the demat boom. This has also led to a rise in the number of online scams targeting gullible investors. New investors often rely on social media investment tips and advice and do not conduct thorough research themselves before investing their money. Notably, the need to regulate the sway of finfluencers in this evolving ecosystem has been highlighted by Sebi on multiple occasions.  

Earlier in May this year, Sebi also urged investors to avoid unregistered advisers and cautioned them about fake profiles impersonating Sebi-registered entities and other famous celebrities which might lure them by giving unregistered investment advice in the form of dubious tips.

In March, the market regulator also mentioned in a release that registered intermediaries advertising on digital platforms will be required to register their verified contact details with the regulator. The market regulator said that the move came amid a rise in securities-related scams on social media platforms such as Facebook, Instagram, YouTube, WhatsApp, Telegram, and X (formerly Twitter).

Meta further mentioned in its blog post that the updates to its advertising policy seek to curb cases of fraud, impersonation, while increasing consumer safety.