SEBI pushes new guidelines to combat fraud on digital platforms

SEBI pushes new guidelines to combat fraud on digital platforms

  • 24.03.2025 12:17
  • cnbctv18.com
  • Keywords: SEBI, Google, Meta

SEBI has introduced new guidelines requiring intermediaries to verify their identities before advertising on platforms like Google and Meta. The measures aim to prevent scams, protect investors, and ensure compliance by April 30, 2025.

Alphabet ServicesMeta ServicesMETAsentiment_satisfied
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Estimated market influence

SEBI

Positivesentiment_satisfied
Analyst rating: N/A

SEBI introduced new guidelines to combat fraud on digital platforms, enhancing transparency and protecting investors.

Google

Positivesentiment_satisfied
Analyst rating: N/A

Google is required by SEBI to verify intermediaries' identities before allowing them to advertise on their platform.

Meta

Meta

Positivesentiment_satisfied
Analyst rating: Strong buy

Meta, like Google, must comply with SEBI's guidelines to verify intermediaries' identities for advertising.

Context

Analysis of SEBI's New Guidelines for Digital Platforms

Key Facts and Data Points:

  • New Guidelines: SEBI requires intermediaries to verify identities before advertising on platforms like Google and Meta.
  • Compliance Deadline: April 30, 2025.
  • Verification Process: Intermediaries must use SEBI-registered contact details (email and mobile numbers) for social media registration.
  • Objective: Enhance transparency, protect investors from scams, and ensure legitimate entities promote services.

Market Insights:

  • Increased Transparency: The guidelines aim to reduce fraudulent activities by ensuring only verified intermediaries can advertise on digital platforms.
  • Investor Protection: By curbing misleading advertisements, SEBI safeguards investors from potential financial losses.
  • Regulatory Collaboration: SEBI’s partnership with social media giants highlights a proactive approach to monitoring and enforcement.

Competitive Dynamics:

  • Strategic Compliance: Intermediaries must adapt their strategies to meet the new requirements, potentially leading to operational changes.
  • Market Impact: The move may reduce competition from unverified entities, creating a more level playing field for legitimate players.

Long-Term Effects:

  • Enhanced Trust: These measures could increase investor confidence in digital platforms as a reliable source of financial information.
  • Regulatory Expansion: SEBI’s initiative sets a precedent for stricter regulations on digital advertising across other sectors.

Regulatory Implications:

  • Enforcement Challenges: Platforms like Google and Meta will need to implement robust verification processes to comply with SEBI’s guidelines.
  • Potential Penalties: Non-compliance may result in restrictions on advertising activities, emphasizing the importance of timely adherence.

Conclusion:

SEBI’s new guidelines represent a significant step toward ensuring a secure and fair digital environment for investors. By mandating identity verification and setting clear compliance deadlines, the regulator aims to mitigate risks associated with fraudulent activities on social media platforms.