SEBI Urges Tech Giants to Curb Investment Frauds

On 6th November 2025, the Securities and Exchange Board of India (SEBI) issued a formal advisory to major social media platforms and internet search engine providers, urging them to strengthen safeguards and adopt stricter verification mechanisms to curb the rising misuse of digital platforms for fraudulent investment promotions.

The market regulator has called upon leading technology companies to fast-track the implementation of mandatory advertiser verification systems, ensuring that only SEBI-registered intermediaries are permitted to advertise or promote investment-related products and services online.
SEBI’s communication highlights growing concerns over the proliferation of fraudulent trading applications, online investment schemes, and misleading promotional campaigns that exploit unsuspecting investors through fake credentials and unregistered entities.
The regulator has recommended the introduction of a distinct verification label or badge that will be displayed alongside the names of SEBI-registered intermediaries and financial advisors, allowing investors to easily distinguish legitimate entities from fraudulent ones.