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

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  • Last Updated on 10 November, 2025

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SEBI advisory on 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.
Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied