SEBI (Securities and Exchange Board of India) has recently taken a significant step towards safeguarding investors’ interests by directing registered intermediaries to use the contact details shared with the market regulator while advertising on social media platforms like Google and Meta. This move comes in the wake of rising securities market frauds observed on various social media platforms such as YouTube, Facebook, Instagram, WhatsApp, X (formerly Twitter), Telegram, and Google Plus.
The Securities and Exchange Board of India is the regulatory body for the securities market in India. Its primary objective is to protect the interests of investors and promote the development of the securities market. In recent years, with the increasing use of social media platforms, there has been a surge in fraudulent activities in the securities market. These fraudsters use social media to lure unsuspecting investors into fraudulent schemes, resulting in significant financial losses.
To combat this rising trend, SEBI has directed registered intermediaries to use the contact details shared with the market regulator, such as email IDs and mobile numbers, while advertising on social media platforms. This step aims to ensure that investors have access to accurate and reliable information about the intermediaries they are dealing with. It will also help in establishing a direct line of communication between investors and intermediaries, making it easier for investors to seek redressal in case of any grievances.
SEBI’s move is a significant step towards creating a more transparent and secure environment for investors in the securities market. By using the contact details shared with the market regulator, intermediaries will be held accountable for the information they provide on social media platforms. This will act as a deterrent for fraudulent activities and help in building trust among investors.
Moreover, this step will also help in curbing the spread of false and misleading information on social media platforms. With the increasing use of social media for advertising, there has been a rise in the dissemination of false and misleading information about securities and investment opportunities. This not only misleads investors but also creates a volatile market environment. By using the contact details shared with SEBI, intermediaries will have to ensure that the information they provide is accurate and in line with the regulations set by the market regulator.
SEBI’s directive is also a step towards promoting responsible advertising on social media platforms. With the growing influence of social media, it has become a powerful tool for marketing and advertising. However, with this power comes the responsibility to ensure that the information being shared is not misleading or fraudulent. By using the contact details shared with SEBI, intermediaries will have to adhere to the guidelines set by the market regulator, promoting responsible advertising practices.
This move by SEBI is also in line with the government’s vision of creating a digital and transparent economy. With the increasing use of social media, it has become imperative to regulate and monitor the activities taking place on these platforms. By using the contact details shared with SEBI, intermediaries will be under the market regulator’s radar, ensuring that they comply with the regulations and guidelines set by SEBI.
In conclusion, SEBI’s directive to registered intermediaries to use the contact details shared with the market regulator while advertising on social media platforms is a significant step towards creating a more secure and transparent environment for investors. It will not only help in curbing fraudulent activities but also promote responsible advertising practices. This move is a testament to SEBI’s commitment to protecting investors’ interests and promoting the development of the securities market in India.
