Context:
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
