SEBI Urges Social Media and Search Platforms to Take Action Against Online Investment Scams

PR No.69/2025, Dated: 06.11.2025

1. Background

Responding to the global call to action by the International Organisation of Securities Commissions (IOSCO), the Securities and Exchange Board of India (SEBI) has advised major social media platforms, search engines, and digital intermediaries to adopt stronger safeguards against online investment frauds.

2. Key Concerns Highlighted by SEBI

Online scams continue to exploit:

• Fake trading apps,
• Fraudulent investment schemes,
• Misleading advertisements, and
• Impersonation of registered intermediaries.

Many retail investors fall prey to such schemes due to unverified platforms and deceptive marketing tactics.

3. Measures Suggested for Digital Platforms

SEBI has requested platforms to implement:

• Mandatory verification of advertisers, especially those offering investment and trading services,
• Clear labelling and identification of genuine trading applications, and
• Stronger filters and reporting mechanisms to track and block fraudulent content.

These steps are aimed at ensuring only legitimate, regulated entities reach investors.

4. Investor Advisory

SEBI has also urged investors to:

• Verify the credentials of entities on SEBI’s official website,
• Use only registered platforms and authorised intermediaries,
• Avoid unknown links, unverified social handles, and unofficial apps, and
• Ensure transactions are made through secure and validated UPI handles.

5. Significance

The move seeks to:

• Enhance investor protection,
• Reduce financial frauds in digital spaces, and
• Support a safer, more transparent online investment ecosystem.

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