Meta's New Mandate: SEBI Verification for India Securities Ads

In a significant move poised to reshape digital financial advertising in India, Meta (parent company of Facebook, Instagram, and WhatsApp) announced in June 2025 that it will require mandatory verification for all advertisers running securities and investment-related ads targeting users in India. This crucial step, with compliance enforcement beginning as early as July 31, 2025, is a direct response to growing regulatory pressure from the Securities and Exchange Board of India (SEBI) to curb misleading financial promotions and protect investors.

For years, the digital space has seen a proliferation of financial advice and product promotions, often by unregistered entities or "finfluencers," leading to concerns about misinformation and potential investor fraud. SEBI has been actively pushing for greater accountability from digital platforms.

Meta's new requirements detail how advertisers must comply:

1. SEBI Registration as Prerequisite: All advertisers, including global campaigns targeting Indian users, must verify the person or organization benefiting from and paying for the ad by providing their SEBI registration information. This includes their verified name, SEBI registration number, and location, which will be publicly displayed on the advertisement itself.

2. Transparency by Design: The verified details will appear as a disclaimer directly on the ad, offering immediate transparency to users about the entity behind the financial promotion. These ads will also be archived in Meta's Ad Library for up to seven years.

3. Alternative for Exempt Entities: Recognizing that some entities (like financial educators or trainers) may not require SEBI registration, Meta has provided alternative verification methods. These require submitting government-issued IDs for individuals or business documents for organizations, with their verified identity still being publicly displayed.

4. Phased Rollout: Meta began rolling out the verification process from June 26, 2025, with full global availability expected by July 28, 2025. Advertisers are being given at least one month from their notification date to complete the process. Existing ads published before July 31, 2025, do not need to be retroactively edited, provided the advertiser account is verified. This policy shift by a dominant digital platform like Meta signifies a pivotal moment in the regulation of online financial content.

5. Shared Responsibility: It demonstrates a critical collaboration between a global tech giant and a national financial regulator, moving towards a model of shared responsibility in combating digital fraud.

6. Elevated Bar for Financial Advertising: The stringent verification process raises the bar significantly for anyone wishing to advertise financial products or services on Meta's platforms in India. This will likely push unregistered "finfluencers" out of the advertising space unless they formalize their operations.

7. Enhanced Investor Protection: Ultimately, the measure aims to foster a more trustworthy digital environment for investors by ensuring that financial advice and promotions come from verified, accountable sources.

Meta's proactive implementation reflects the increasing global trend where digital platforms are held to higher standards of content moderation and verification, particularly in sensitive sectors like finance. This will undoubtedly shape future digital advertising strategies across the industry.