India’s market regulator enforces stricter regulations for intermediaries when promoting ads on social media
The Securities and Exchange Board of India (SEBI) announced that intermediaries who wish to post advertisements on social media platforms must now register with the regulatory body. This move aims to ensure that the advertisements comply with SEBI regulations and guidelines.
SEBI expressed concerns regarding the increasing number of advertisements being disseminated through social media platforms. The regulatory body emphasized the importance of monitoring these advertisements to prevent misleading or false information from being circulated. By requiring intermediaries to register before posting ads on social media, SEBI aims to have better control over the content being shared.
The registration process for intermediaries seeking to post ads on social media will involve providing detailed information to SEBI. This information will include the intermediary’s credentials, the nature of the advertisement, and any other relevant details. By collecting this information, SEBI will be able to verify the authenticity of the intermediaries and ensure that the advertisements meet regulatory standards.
In addition to registering intermediaries, SEBI will also be monitoring the content of the advertisements being posted on social media platforms. The regulatory body will be on the lookout for any misleading information, false claims, or other violations of SEBI guidelines. By actively monitoring these advertisements, SEBI aims to protect investors and maintain the integrity of the market.
SEBI’s decision to require intermediaries to register before posting ads on social media is a proactive step towards regulating the content shared on these platforms. With the increasing popularity of social media, it has become a common channel for the dissemination of advertisements. By implementing this registration requirement, SEBI is taking a proactive approach to ensure that the advertisements being shared are accurate and compliant with regulatory standards.
Investors and market participants are encouraged to be vigilant when engaging with advertisements on social media. It is important to verify the authenticity of the information provided in these ads and to conduct thorough research before making any investment decisions based on social media advertisements. By being aware of potential risks and exercising caution, investors can protect themselves from falling victim to misleading or false advertisements.
Overall, SEBI’s decision to require intermediaries to register before posting ads on social media is a positive step towards ensuring the integrity of the market. By monitoring the content of advertisements and verifying the authenticity of intermediaries, SEBI is working to protect investors and maintain market stability. Investors are advised to stay informed and exercise caution when engaging with advertisements on social media platforms.
