SEBI Tightens Rules for Intermediaries Advertising on Social Media Amid Rising Frauds
SEBI Tightens Rules for Intermediaries Advertising on Social Media Amid Rising Frauds
The Securities and Exchange Board of India (SEBI) has introduced stricter guidelines for intermediaries advertising on social media platforms to curb the rising number of frauds in the securities market.
SEBI stated that intermediaries looking to publish advertisements on platforms like YouTube, Facebook, and X must register using their official email and mobile number linked to the regulator’s portal.
The move aims to enhance transparency and prevent misleading financial promotions.
The markets regulator emphasized that social media platforms will now be required to verify registered intermediaries before allowing them to upload advertisements.
This step is part of SEBI’s broader effort to combat fraudulent activities and protect investors from misleading financial schemes circulating online.
Key Highlights:
SEBI mandates intermediaries to use registered email and mobile numbers for social media ads.
Social media platforms must verify intermediary details before approving ads.
Guidelines introduced amid a surge in securities market frauds on digital platforms.
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