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SEBI Implements New Registration Requirement for Social Media Advertising

The Securities and Exchange Board of India (SEBI) has recently introduced a new mandate for registered intermediaries intending to advertise on social media platforms, including Google and Meta. These intermediaries are now required to register on these platforms using the contact information—specifically the email address and mobile number—previously provided to SEBI.

This regulatory action is a response to a notable surge in fraudulent activities in the securities market, which have become increasingly prevalent on widely used social media channels such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and even on the Google Play Store.

SEBI has identified that many perpetrators of these frauds are exploiting the growing reliance on digital communication to lure victims under the guise of offering online trading courses, seminars, and dubious testimonials that promise guaranteed returns or risk-free investments.

In an effort to enhance investor protection and ensure greater transparency in advertising practices, SEBI is reinforcing the governance of registered intermediaries on these platforms. According to a statement from the regulator, “It has been decided in consultation with Social Media Platform Providers that all SEBI registered intermediaries uploading/publishing advertisements on SMPPs like Google/Meta (to start with) shall be required to register on such social media platforms using their email IDs and mobile numbers registered on SEBI SI Portal.”

Subsequently, these social media platforms will conduct verifications on the intermediaries before granting them permission to post advertisements. This verification endeavor is aimed at ensuring that only verified and legitimate intermediaries are allowed to advertise, thereby reducing the potential for misleading or fraudulent content.

To effectively implement this new procedure, SEBI has urged all intermediaries seeking to advertise on social media platforms to update their contact information—namely their email ID and mobile number—on the SEBI SI Portal by April 30, 2025. This initiative is a crucial part of SEBI’s ongoing commitment to combat fraud, protect investor interests, and foster a more transparent and secure environment in the securities market.

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