The Securities and Exchange Board of India (SEBI) has escalated its campaign against the rising tide of online investment scams that are deceiving retail investors through fake trading platforms, unregistered advisory services, and misleading advertisements on social media and other digital platforms.
In a press release dated November 6, 2025, SEBI formally called upon major social media networks, search engines, and app stores to institute stricter mechanisms for verifying advertisers and applications in the securities domain. This includes mandatory verification that only SEBI-registered entities can promote investment products and services, as well as distinct verified labeling for authentic, regulated trading apps on app stores. SEBI emphasized the necessity of rapid takedown of fraudulent content to curb digital manipulation of investors.
This initiative aligns with the International Organization of Securities Commissions (IOSCO)’s global call, issued in May 2025, urging digital platforms to take responsibility in reducing financial harm to investors by combating misinformation, mis-selling, and fraud effectively. SEBI reiterated that social media intermediaries and platforms share joint responsibility for maintaining a secure digital marketplace and must proactively report suspicious activities and promotions.
By extending accountability beyond traditional financial market participants to intermediaries in the digital ecosystem, SEBI aims to reinforce transparency and investor protection within India’s fintech-driven capital markets. This move marks a significant step towards integrating digital platform governance with the integrity goals of the financial markets, contributing to the broader Digital India mission and mitigating systemic risks associated with online financial fraud.
SEBI’s call to action stresses the importance of cross-sector collaboration to protect retail investors against the increasing sophistication of online financial scams and illegal profit schemes propagated via social media.
The regulator continues to emphasize investor education and awareness in parallel with these enforcement measures, highlighting its commitment to safeguarding market integrity and investor confidence in India’s rapidly evolving digital investment landscape.
