{"id":366025,"date":"2025-11-07T16:30:49","date_gmt":"2025-11-07T11:00:49","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=366025"},"modified":"2025-11-07T16:53:00","modified_gmt":"2025-11-07T11:23:00","slug":"sebi-effort-to-combat-online-investment-scam-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/07\/sebi-effort-to-combat-online-investment-scam-legal-news\/","title":{"rendered":"SEBI Intensifies Crackdown on Online Investment Scams; Urges Social Media Platforms to act"},"content":{"rendered":"
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On 6-11-2025, the Securities and Exchange Board of India<\/span> issued a notification intensifying efforts to Combat Online Investment Scams, Calls for Greater Collaboration from Social Media Platforms<\/span>.<\/p>\n

Background:<\/h3>\n

This initiative is in alignment with the global call to action by the International Organization of Securities Commissions.<\/span><\/p>\n

On 21-5-2025, the International Organization of Securities Commissions<\/span> 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.<\/p>\n

Efforts made by Securities and Exchange Board of India (‘SEBI’):<\/h3>\n

Supporting the recommendations of International Organization of Securities Commissions<\/span>, SEBI called upon platforms to immediately prioritize and fast track the following measures:<\/p>\n

    \n
  1. \n

    Mandatory Advertiser Verification<\/span> in securities market domain to ensure that only SEBI registered entities can advertise investment products and services.<\/span><\/p>\n<\/li>\n

  2. \n

    Verified Status through clear labelling of Registered Intermediary Apps<\/span> to regulate trading applications available on app store to help investors differentiate them from fraudulent apps.<\/span><\/p>\n<\/li>\n<\/ol>\n

    SEBI further advises investors to exercise extreme caution:<\/h3>\n
      \n
    1. \n

      Verify registration of entities at- https:\/\/www.sebi.gov.in\/intermediaries.html<\/a><\/p>\n<\/li>\n

    2. \n

      Carry out transactions only through authentic trading apps of SEBI registered intermediaries<\/span> after verifying at- https:\/\/investor.sebi.gov.in\/Investor-support.html<\/a><\/p>\n<\/li>\n

    3. \n

      Use Validated UPI Handles:<\/span><\/p>\n