SEBI Directs Intermediaries to Use Registered Contact Particulars for Promoting on Social Media Platforms
SEBI on Friday requested registered intermediaries wishing to promote on social media platforms like Google and Meta to register on these platforms utilizing the contact particulars equivalent to the e-mail ID and cell quantity supplied to the markets watchdog.
The transfer is geared toward curbing fraudulent actions within the securities market.
This resolution got here after SEBI noticed a fast enhance in frauds associated to securities markets being carried out on platforms equivalent to YouTube, Fb, Instagram, WhatsApp, X (previously Twitter), Telegram, and the Google Play Retailer.
With growing adoption of digital communication platforms, SEBI noticed that perpetrators of such frauds are attractive victims within the identify of offering on-line buying and selling programs, seminars, giving deceptive or misleading testimonials, guarantees or ensures of assured or threat free return and many others. by way of numerous social media platforms (SMPs).
To guard buyers and enhance transparency, SEBI has taken steps to strengthen the conduct of registered intermediaries on these platforms.
“It has been determined in session with Social Media Platform Suppliers that each one SEBI registered intermediaries importing/ publishing commercials on SMPPs like Google/ Meta (to begin with), shall be required to register on such social media platforms utilizing their e-mail IDs and cell numbers registered on SEBI SI Portal,” the regulator stated in a press release.
Following this, these platforms will perform verification checks on the intermediaries earlier than permitting them to publish advertisements. This verification course of goals to make sure that solely authentic, verified intermediaries can promote on these platforms.
The regulator has requested all intermediaries who want to promote on SMPs to replace their contact details- particularly their e-mail ID and cell quantity – on the SEBI SI Portal by April 30, 2025.
The transfer is a part of SEBI’s efforts to curb fraudulent actions, safeguard investor pursuits, and promote a extra clear and safe securities market.
