Sebi’s Directive on Social Media Advertisements

Sebi has directed all intermediaries to register with social media platform providers (SMPPs) such as Google and Meta for publishing financial advertisements.

Objective

• Curb fraudulent investment activities on social media platforms.
• Increase transparency and verify the authenticity of financial advertisements.

Who is affected

• Mutual funds
• Investment advisers
• Stock brokers
• Research analysts

Verification Process

• All intermediaries must register with SMPPs using:
  • Email IDs
  • Mobile numbers
    (These should match the details available on the Sebi intermediary portal.)
• SMPPs will then conduct advertiser verification before permitting ad uploads or publication.

Reason for the Move

• Rising concerns over investment-related frauds on platforms like:
  • YouTube, Facebook, Instagram, WhatsApp, X (Twitter), Telegram
• Perpetrators have been:
  • Promoting misleading testimonials
  • Offering fake trading courses and seminars
  • Promising assured, risk-free returns

Source: TET