SEBI Tightens Rules for Social Media Ad Intermediaries Amid Rising Frauds
In a decisive move to curb fraudulent activities, the Securities and Exchange Board of India (SEBI) has tightened regulations for intermediaries wishing to publish advertisements on social media platforms. As stated in Reuters, this regulatory adjustment comes in response to a noticeable upsurge in securities market frauds on popular platforms like YouTube, Facebook, and X.
A New Era of Compliance
Under these new guidelines, intermediaries must register on social media platforms using the email and mobile number linked to their SEBI portal registration. This measure aims to streamline identity verification, making it more challenging for fraudulent entities to penetrate the market via misleading advertisements.
The Fight Against Fraud
According to SEBI, social media platforms will now conduct robust verification of intermediaries before allowing advertisement postings. This move is projected to significantly bolster the integrity of digital advertising within the financial sector.
Impacts on the Industry
The tightened rules are part of SEBI’s broader strategy to protect investors and maintain market health. As the digital advertising landscape evolves, SEBI’s proactive measures ensure that advertisements not only adhere to ethical standards but also promote transparency across the board.
What Lies Ahead
As intermediaries adapt to these stringent requirements, stakeholders anticipate a positive shift towards trust-building within the market. Meanwhile, SEBI’s vigilance ensures that platforms will act responsibly, examining each request scrupulously before adverts are published.
SEBI’s steps to govern social media advertising mark a pivotal moment in maintaining integrity within India’s vibrant digital economy. With these new rules in force, the path ahead signals not only compliance but a concerted effort to eradicate fraud from the advertising realm.
