SEBI urges social media platforms to combat online investment scams
The move aligns with the global call to action by the International Organization of Securities Commissions
The Securities and Exchange Board of India (SEBI) has stated reinforcing its efforts to combat online investment scams.
In a formal communication, the market regulator apprised major social media platforms and internet search engines about the initiatives. These align with the global call to action by the International Organization of Securities Commissions (IOSCO), which regulates the world’s securities and futures markets.
On 21 May 2025, IOSCO highlighted the critical role of platform providers in combating online harm. It urged them to enhance efforts to reduce the risk of financial harm to investors.
In line with the Commission’s reasoning, SEBI expressed its support for the recommendations, insisting that major online platforms must act swiftly to address the growing challenges of fraud faced by investors.
The market watchdog asked them to prioritise and fast-track measures for the Indian market, including the implementation of a verification process. This would ensure that only SEBI-registered entities can advertise investment products and services.
It also suggested the introduction of a distinct verified label for authentic, regulated trading applications on app stores to assist investors in identifying genuine platforms and avoiding fraud.
SEBI has also advised the public to exercise caution while investing by verifying the registration of entities on https://www.sebi.gov.in/intermediaries.html. It stressed that transactions be conducted only through authentic trading apps of SEBI-registered intermediaries after verification at https://investor.sebi.gov.in/Investor-support.html.
The regulator further directed consumers to use the Validated UPI Handles (ending with @valid) and the SEBI Check platform at https:iportal.sebi.gov.in/intermediary/sebi-check or the Saarthi app for secure investor payments.
In another statement, SEBI said it recently conducted a Municipal Bond and REIT/InvIT Outreach Programme in Raipur, Chhattisgarh. It was to empower urban local bodies and the department of state government, with knowledge and insights on municipal bonds, REIT/InvITs and capital market fundraising for infrastructure development.
Several senior officials from 14 urban local bodies, including Raipur, Bilaspur, Bhilai, Raigarh, and officials from Urban Administration and Development and Finance Department of the Government of Chhattisgarh, State Urban Development Agency participated in the program.