Social Media Platforms to Verify SEBI Intermediaries Before Publishing Advertisements

The Securities and Exchange Board of India has issued an advisory casting responsibility on social media platform providers (SMPPs) to carry out advertiser verification of SEBI-registered intermediaries before permitting them to publish advertisements on these platforms.

Intermediaries are required to register on social media platforms such as YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter), Telegram, Google Play Store, Apple Store, etc. using their email ids and mobile numbers registered on the SEBI SI Portal, which shall then be verified by SMPPs like Google/Meta before allowing uploading of advertisements. A deadline of April 30, 2025, has been provided for intermediaries such as investment advisers, stockbrokers, research analysts, etc. to upload the information on the SEBI database to enable compliance.

The step has been introduced to further curb the menace of frauds related to securities market conducted online in the form of trading courses, seminars, promising assured or risk-free return etc.

SEBI has been actively curtailing unverified investment claims made by unregistered financial advisors and influencers through a slew of circulars, advisories, and consultation papers. In October last year, a circular was issued directing ‘persons regulated by the board (including recognised stock exchanges, clearing corporations, and depositories) and their agents to cut ties with unregistered financial advisors providing recommendations or making claims related to securities. A clarificatory draft circular was also issued in December providing detailed FAQs to ensure strict compliance.