The market watchdog, the Securities and Exchange Board of India (Sebi), announced on Thursday that it has contacted 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.
The move is part of Sebi’s efforts to combat online investment scams.
The regulator noted in a statement that this initiative aligns with the global call to action issued by the International Organisation of Securities Commissions (IOSCO).
In May, the IOSCO highlighted the critical role of social media platforms in combating online harm and urged them to enhance efforts to reduce the risk of financial harm to investors. The market regulator has expressed its support for the recommendations made by the IOSCO and has urged major online platforms to act swiftly to address the growing challenges of investor fraud.
The regulator has called upon social media and internet platforms to prioritise and fast-track key measures for the Indian financial 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 introducing a distinct verified label for authentic, regulated trading applications on app stores. This measure is intended to help investors easily identify genuine platforms and avoid fraudulent ones.
Investor guidance reiterated
Reaffirming its guidance to investors, Sebi has urged the public to exercise extreme caution when investing. Investors should verify the registration status of all entities before committing funds by visiting the official website — www.sebi.gov.in/intermediaries.html — and conduct transactions only through authentic trading apps of Sebi-registered intermediaries after verification at investor.sebi.gov.in/Investor-support.html; and use “Validated UPI Handles” (those ending with “@valid”) and the “SEBI Check” platform at iportal.sebi.gov.in/intermediary/sebi-check or via the Saarthi app for secure investor payments.
Municipal Bond & REIT/InvIT
In a separate statement, the SEBI said that it conducted a Municipal Bond and REIT/InvIT Outreach Programme in Raipur, Chhattisgarh, on 30 October.
This was aimed at empowering urban local authorities and relevant state government departments with knowledge and insights on municipal bonds, REIT/InvITs, and capital market fundraising for infrastructure development.
The outreach programme saw the participation of senior officials from 14 urban local bodies, including Raipur, Bilaspur, Bhilai, and Raigarh, as well as officials from the Urban Administration and Development and Finance Department of the Government of Chhattisgarh, and the State Urban Development Agency.
