Sebi Urges Social Media Platforms to Enhance Measures Against Online Investment Fraud
SEBI/Exchange
|
Updated on 06 Nov 2025, 02:57 pm
Reviewed By
Satyam Jha | Whalesbook News Team
Short Description:
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Detailed Coverage:
The Securities and Exchange Board of India (Sebi) has formally communicated with leading social media and internet search platforms to bolster efforts against online investment scams. This initiative is part of Sebi's intensified campaign to combat fraudulent activities and aligns with global guidelines from the International Organization of Securities Commissions (IOSCO).
Sebi has urged these online platforms to implement a verification process, ensuring only Sebi-registered entities can advertise investment products and services. They also suggested introducing a distinct verified label for authentic trading applications on app stores to help investors easily identify genuine platforms and avoid fraudulent ones.
In addition, Sebi reiterated its advisory for investors to exercise extreme caution, verify entity registrations on the Sebi website (https://www.sebi.gov.in/intermediaries.html), conduct transactions only through authentic trading apps of Sebi-registered intermediaries (https://investor.sebi.gov.in/Investor-support.html), and use 'Validated UPI Handles' and the 'SEBI Check' platform for secure payments.
Separately, Sebi conducted an outreach program in Raipur to educate urban local bodies and state government departments about municipal bonds and REIT/InvITs for infrastructure fundraising.
Impact: This collaboration between Sebi and major tech platforms is crucial for enhancing market integrity and investor confidence by reducing the prevalence of online scams and creating a safer online investment environment. The outreach program aims to promote capital market fundraising for infrastructure development.
Impact Rating: 8/10
Difficult Terms: Sebi: Securities and Exchange Board of India, the primary regulator of the securities market in India. IOSCO: International Organization of Securities Commissions, a global standard-setter for securities regulation. REIT/InvIT: Real Estate Investment Trust/Infrastructure Investment Trust, pooled investment vehicles that own income-generating real estate or infrastructure. Validated UPI Handles: Unified Payments Interface (UPI) identification marks verified for secure transactions, often ending with '@valid'.
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