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SEBI has asked registered intermediaries including MFs/RIAs to link email IDs and mobile numbers with social media platforms like YouTube, Meta, Google, X, Telegram and so on. These details have to match email IDs and mobile numbers registered with the SEBI intermediary portal.
The market regulator has clarified the intermediaries will have to update these details on SEBI intermediary portal and social media platforms by April 30, 2025.
The market regulator has asked social media platforms to verify the registration of any SEBI registered intermediary before allowing them to post anything on their platform.
To start with, this rule will be applicable only to social platforms of Meta and Google and will be applicable to other platforms like X, Telegram, Apple Store and WhatsApp in the future.
The regulator aims to increase transparency in the securities market, curb fraudulent activities, protect the interest of investors and strengthen the conduct of SEBI Registered Intermediaries with this new provision.
SEBI said, “SEBI has noticed a rapid increase in frauds related to securities market on various social media platforms (SMPs) such as YouTube, Facebook, Instagram, WhatsApp, X (previously Twitter), Telegram, Google Play Store, Apple Store etc. With increasing adoption of digital communication platforms, it is observed that perpetrators of such frauds are enticing victims in the name of providing online trading courses, seminars, giving misleading or deceptive testimonials, promise or guarantee of assured or risk free return etc. through various SMPs. In order to increase transparency in the securities market, curb fraudulent activities, protect the interest of investors and to further strengthen the conduct of SEBI registered intermediaries, it has been decided in consultation with Social Media Platform Providers (SMPPs) that all SEBI registered intermediaries uploading/ publishing advertisements on SMPPs like Google/ Meta (to start with), shall be required to register on such social media platforms using their email ids and mobile numbers registered on SEBI intermediary Portal.”
