SEBI Mandates Social Media Ad Verification to Prevent Scams

To combat online financial fraud, the Securities and Exchange Board of India (SEBI) has introduced new rules requiring registered intermediaries to verify their identities before advertising on platforms like Google and Meta.

Reportedly, scams on YouTube, Facebook, WhatsApp, and other platforms have risen, with fraudsters using fake promises, testimonials, and trading courses to lure investors.

Under the new rules, intermediaries must register on social media using the same contact details listed on SEBI’s SI Portal. Platforms will verify these details before approving ads.

SEBI has set an April 30, 2025, deadline for intermediaries to update their information.

The new regulations tout to curb deceptive marketing and protect investors by tightening digital ad regulations, making fraud harder.