PR No.69/2025

SEBI Intensifies Efforts to Combat Online Investment Scams, Calls for Greater Collaboration from Social Media Platforms

In an effort to enhance investor protection, SEBI has formally communicated with major social media platforms and internet search engine providers, urging them to implement robust mechanisms to prevent the misuse of their platforms for fraudulent activities.

This initiative aligns with the global call to action by the International Organization of Securities Commissions (IOSCO). In its statement on May 21, 2025, IOSCO highlighted the critical role of platform providers in combating online harm and urged them to enhance efforts to reduce the risk of financial harm to investors.

SEBI supports IOSCO's recommendations and to address these challenges decisively, SEBI has called upon the platforms to immediately prioritize and fast-track the following measures for the Indian market:

• Mandatory Advertiser Verification in securities market domain: Implementing a verification process to ensure that only SEBI-registered entities can advertise investment products and services.
• Verified Status through clear labelling of Registered Intermediary Apps: Introducing a distinct label for authentic, regulated trading applications available on app stores to help investors differentiate them from fraudulent apps.

SEBI again advises investors to exercise extreme caution –

1. Verify registration of entities before investing at https://www.sebi.gov.in/intermediaries.html

2. Carry out transactions only through authentic trading apps of SEBI registered intermediaries after verification at https://investor.sebi.gov.in/Investor-support.html

3. Use “Validated UPI Handles” (“@valid” UPI IDs of SEBI-registered investor-facing intermediaries) and “SEBI Check” platform by visiting https://siportal.sebi.gov.in/intermediary/sebi-check or through Saarthi app, for secure investor payments (refer Press Release No. 64/2025)

Platform responsibility to prevent online investment scams: require advertiser verification and verified app labelling to protect investors. SEBI directs social media platforms and search engines to implement mandatory advertiser verification restricted to SEBI-registered entities and to introduce verified labelling for SEBI-registered intermediary trading apps; it also advises investors to verify intermediary registration, transact only through authenticated apps, and use validated UPI handles and the SEBI Check platform for secure payments.