Advisory to SEBI Registered Intermediaries- Uploading advertisements on Social Media Platforms (SMPs)

Okay, I will analyze the provided policy text and generate the report as requested. **Report on SEBI Advisory Regarding Advertisements on Social Media Platforms** **1. Executive Summary:** This report analyzes the SEBI advisory regarding the uploading of advertisements on Social Media Platforms (SMPs) by SEBI Registered Intermediaries. The core purpose of this advisory is to increase transparency in the securities market, curb fraudulent activities, and protect the interests of investors. Key findings include the requirement for intermediaries to register on SMPs using their SEBI SI Portal registered contact information, enabling SMPPs to verify advertisers before advertisements are published. The advisory aims to address the rise of securities market-related frauds on social media. **2. Introduction:** This report provides an overview and analysis of the SEBI advisory (PR No.142025) regarding the uploading of advertisements on Social Media Platforms (SMPs) by SEBI Registered Intermediaries. The report focuses on the policy's objectives, provisions, and expected impact based solely on the information contained within the provided policy text. **3. Policy Overview:** * **Core Objective(s):** Based on the provided text, the core objectives of this policy are to: * Increase transparency in the securities market. * Curb fraudulent activities related to the securities market. * Protect the interests of investors. * Strengthen the conduct of SEBI Registered Intermediaries. **4. Background and Rationale:** * **New Policy:** This is a new policy advisory. The provided text indicates a rapid increase in frauds related to the securities market on various Social Media Platforms (SMPs). Perpetrators are enticing victims through online trading courses, misleading testimonials, and promises of guaranteed returns. This advisory addresses the need to counter these fraudulent activities and protect investors who are increasingly vulnerable due to the growing adoption of digital communication platforms. **5. Key Provisions / Changes:** * **New Policy:** * SEBI Registered Intermediaries uploading/publishing advertisements on SMPPs (like Google and Meta) must register on those SMPs using their email IDs and mobile numbers registered on the SEBI SI Portal. * Social Media Platform Providers (SMPPs) will conduct advertiser verification of SEBI Registered Intermediaries. * Intermediaries will be permitted to upload/publish advertisements on SMPPs only after successful advertiser verification by the SMPPs. * All SEBI Registered Intermediaries interested in uploading/publishing advertisements on these platforms are advised to update their contact details (email ID and mobile number) in the intermediary database on the SEBI SI Portal by April 30, 2025. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * SEBI Registered Intermediaries who upload or intend to upload advertisements on Social Media Platforms (SMPs) such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, Google Play Store, and Apple Store. * Social Media Platform Providers (SMPPs) such as Google and Meta. * Investors in the securities market. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** * SEBI (Securities and Exchange Board of India): Responsible for issuing the advisory and overseeing its implementation. * Social Media Platform Providers (SMPPs) such as Google and Meta: Responsible for implementing the advertiser verification process. * SEBI Registered Intermediaries: Responsible for registering on SMPPs with the correct contact information and updating their information on the SEBI SI Portal. * **Timelines or procedures:** * SEBI Registered Intermediaries must update their contact details on the SEBI SI Portal by April 30, 2025. * SMPPs will carry out advertiser verification after intermediaries register on the platforms. **8. Expected Outcomes / Impact of Changes:** * **New Policy:** The likely intended outcomes are: * Increased transparency in securities market advertising on social media. * Reduced fraudulent activities related to securities market advertising on social media platforms. * Enhanced protection of investors from misleading or deceptive advertisements on social media. * Improved accountability of SEBI Registered Intermediaries regarding their advertisements on social media. **9. Conclusion:** The SEBI advisory is a significant step towards addressing the growing problem of securities market-related frauds on social media platforms. By requiring SEBI Registered Intermediaries to register with verified contact information and by mandating advertiser verification by SMPPs, the advisory aims to increase transparency, curb fraudulent activities, and protect investors. The April 30, 2025, deadline for updating contact information on the SEBI SI Portal is a critical implementation milestone for intermediaries. This policy advisory demonstrates SEBI's proactive approach to regulating digital advertising and protecting investors in the evolving landscape of social media.

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