Summary of this article
Sebi urges social media platforms to curb investment scams.
Only Sebi-registered entities allowed to advertise investment products.
Investors should verify apps and intermediaries before online transactions.
Amid rising concerns over online investment fraud, Sebi has reached out to leading social media platforms and search engines, asking them to strengthen measures that prevent the use of their platforms for fraudulent investment schemes. The move is part of an effort to safeguard investors and create a more secure online investment environment.
Sebi Calls on Social Media Platforms to Prevent Investment Scams
Sebi said it is aligning with the global recommendations of the International Organization of Securities Commissions (IOSCO) to strengthen investor protection in India. In its statement on May 21, 2025, IOSCO mention the important role of platform providers in preventing online harm and asks them to take steps to reduce the risk of financial loss for investors.
To address these issues in the Indian market, Sebi has also directed social media platforms and internet search providers to prioritise and implement particular steps. A key step is mandatory advertiser verification in the securities market domain, which ensures that only Sebi-registered entities are allowed to advertise investment products and services.
Another measure is to provide a verified status for registered intermediary apps. Platforms should clearly label authentic, regulated trading applications available on app stores that help investors to distinguish them from fraudulent or unregulated apps.
Sebi Urges Investors to Stay Cautious
Sebi has also advised investors to exercise extreme caution while investing online. Investors should always check the official SEBI intermediaries website before making any investments to ensure that entities are properly registered. Only Sebi-registered entities must be trusted for investment activities to ensure the safety of funds.
Investors are also urged to carry out transactions exclusively through authentic trading apps of Sebi-registered intermediaries, which can be verified on Sebi's investor support portal. For secure payments, Sebi suggests using validated UPI handles that belong to Sebi-registered investor-facing intermediaries or the Sebi Check platform which is also accessible through the Saarthi app.
Sebi's efforts seek to improve investor protection and can reduce the risks of falling victim to online investing scams by enabling safer participation in the securities market.
