SEBI Urges Digital Platforms to Tackle Fraudulent Investment Activities

Market regulator SEBI on Thursday said it has reached out to leading social media and internet search platforms, urging them to implement stronger measures to curb the misuse of their networks for fraudulent investment-related activities.

In a statement, the Securities and Exchange Board of India (SEBI) said it has intensified its efforts to combat online investment scams and has “formally communicated” with major social media platforms and internet search engines regarding the issue.

Alignment with Global Initiative

This initiative aligns with the global call to action by the International Organization of Securities Commissions (IOSCO).

In its statement on May 21, 2025, IOSCO highlighted the critical role of platform providers in combating online harm and urged them to enhance efforts to reduce the risk of financial harm to investors.

SEBI has expressed its support for the recommendations made by IOSCO and has urged major online platforms to act swiftly to address the growing challenges of investor fraud.

Key Measures for the Indian Market

The regulator has called upon social media and internet platforms to prioritise and fast-track key measures for the Indian market. These include the implementation of a verification process to ensure that only SEBI-registered entities can advertise investment products and services.

Additionally, SEBI has suggested the introduction of a distinct verified label for authentic, regulated trading applications on app stores to help investors easily identify genuine platforms and avoid fraudulent ones.

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What Investors Need to Do?

Reiterating its advisory to investors, SEBI has urged the public to exercise extreme caution while investing. Investors should:

• Verify the registration of entities before investing by visiting https://www.SEBI.gov.in/intermediaries.html
• Conduct transactions only through authentic trading apps of SEBI-registered intermediaries after verification at https://investor.SEBI.gov.in/Investor-support.html
• Use “Validated UPI Handles” (those ending with “@valid”) and the “SEBI Check” platform at https://iportal.SEBI.gov.in/intermediary/SEBI-check or via the Saarthi app for secure investor payments

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