SEBI's New Social Media Advertising Rules: What It Means For Businesses & Investors

Date: March 22, 2025

Author: Kriti Singh (kriti7479@blog.com)

               

​SEBI New Social Media Advertising Rules: A Game Changer for Investors

The Securities and Exchange Board of India (SEBI) has tightened regulations on social media advertising to curb fraud and misleading financial promotions. With the rise of fake investment tips and stock market scams, these rules aim to ensure transparency and protect investors. 

Key Highlights of SEBI New Rules:

• Mandatory SEBI Registration: Any financial advertiser must be SEBI-registered. 
•  Social Media Platforms Responsibility: Platforms like YouTube and Facebook must verify SEBI approval before running financial ads. 
• Action Against Unregistered Influencers: Financial influencers (Finfluencer) without SEBI registration cannot promote investment schemes. 
• Clear Disclaimers: Advertisements must include risk disclosures to prevent misleading claims. 

Impact on Businesses & Investors:

• For Influencers: Those without SEBI registration can promote financial products anymore. 
• For Brokerage Firms: Compliance requirements will become stricter, ensuring only genuine firms advertise. 
• For Retail Investors: Safer investment environment with fewer scams and misleading ads. 

Final Thoughts

SEBI move is a huge step in reducing financial fraud on social media. However, effective enforcement will be key. 

Do you think this will clean up financial content online? 

Share your thoughts!