SEBI Verification Now a Must for Investment Ads on Meta Platforms

Meta has introduced a new rule requiring SEBI verification for all investment-related ads on its platforms in India, as per NDTV Profit. The move is aimed at increasing transparency and protecting users from unregulated advice and unverified market predictions.

The decision applies to Meta’s entire ad ecosystem, including Facebook, WhatsApp and Instagram. The new policy aims to address rising concerns over unverified market predictions and misleading financial advice spreading online.

Strengthening Trust with Verified Content

According to Meta’s ad policy, advertisers running investment or stock-related promotions must now upload a SEBI approval letter to proceed with publishing ads. This includes all ads that mention stock tips, trading strategies, or investment recommendations.

The verification requirement is part of Meta’s broader efforts to limit the reach of false or speculative content that could mislead retail investors. In recent years, SEBI has been tightening rules to ensure that only licensed and authorized entities are allowed to issue public investment advice. Meta’s policy aligns with this regulatory stance.

Addressing the Rise of Financial Scams

India has seen a spike in social media-based investment advice and trading recommendations. While many are genuine, a growing number are linked to scams or pump-and-dump schemes. These promotions often promise high returns, encouraging users to act without full knowledge of the risks involved.

Meta’s new regulations for stock ads India is expected to minimize the impact of such fraudulent activities. By requiring SEBI verification, Meta is placing accountability on advertisers, pushing them to comply with Indian regulatory frameworks.

What Does SEBI Verification Entail?

To meet SEBI’s Verified Investment Ads criteria, advertisers must first obtain clearance from SEBI for their investment offerings. Once the regulator provides approval, Meta will allow the ad to run on its platforms. Ads that do not meet this condition will be rejected during the review process.

SEBI’s guidelines for investment advertising include clear disclosures, risk warnings, and an indication of whether the content is promotional or advisory. With Meta enforcing this policy, it becomes more difficult for rogue operators to bypass compliance measures.

A Broader Trend in Platform Accountability

This move by Meta mirrors actions taken by other global platforms as regulatory bodies demand more responsibility from tech companies. By rolling out SEBI’s Verification mandate, Meta becomes one of the first social media platforms in India to formalize such strict rules for financial advertising.

Experts believe this step will help reduce misinformation in the financial ecosystem and encourage users to rely on sources that are transparent and accountable.

Investors are advised to remain cautious and ensure any financial advice they follow comes from SEBI-registered sources. Platforms like Meta tightening their rules is a step in the right direction, ensuring a safer digital space for financial discussions in India.