 "Sebi asks intermediaries to register with Google, Meta for advertisements")
In a bid to curb investment frauds on social media platforms, the Securities and Exchange Board of India (Sebi) on Friday directed all intermediaries to register with platform providers such as Google and Meta for publishing advertisements.
The move is aimed at bringing in transparency and verifying authenticity of advertisements, along with curbing fraudulent activities.
Intermediaries such as mutual funds, investment advisers, stock brokers, and research analysts will have to register with these social media platform providers (SSPMs) using their email ids and mobile numbers used on the Sebi intermediary portal.
“These SMPPs will thereafter carry out advertiser verification of Sebi-registered intermediaries, after which, intermediaries will be permitted to upload or publish advertisements on these platforms,” Sebi stated.
The market watchdog’s directive comes after rising concerns about the rapid increase in frauds related to the securities market on platforms such as YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter) and Telegram.
Sebi stated that perpetrators of such frauds are enticing victims in the name of providing online trading courses, seminars, and giving misleading testimonials, and promising assured risk-free returns through social media platforms.
All intermediaries have been asked to update their details on Sebi’s database by April 30.