Meta Mandates SEBI Verification for Financial Ads in India—A Major Step Toward Transparency

On July 31, 2025, Meta set new rules for every promotion about shares, trading, and other money matters that reach people in India. From now on, anyone who plans to show this kind of promotion must first get approval from SEBI, which is the main body that looks after the country’s market. This move is to make things more open and cut down on fraud.

The step is not just a small thing. Individuals or groups need to give SEBI info like their full name, registration number, and location. This info will be displayed clearly on the ad, along with a warning note saying the content is only for certain use. The aim is simple — so people can see who is behind the ad and if they are real.

If you are someone who doesn't need SEBI approval — like a person who only teaches about money or gives skills training — Meta still wants you to finish another checking. Here, single persons must upload a government identity card, and businesses need to share proof of their company documents. Even if your ad is just for learning, you still have to follow this second method.

After Meta completes the checking, your record will stay inside their Ad Library for almost seven years. This place is open for everyone, so people can see later who made which ad.

This is not the first time that rules arrived for finance creators. In 2023, the Advertising Standards Council of India (ASCI) already set instructions for people working in banking, money services, and the insurance sector. At that time, it became required for creators in this line to register with SEBI and display their complete name, reg number, and what qualification they hold on each post that shares money advice. These qualifications can be like chartered accountant, company secretary, or having a license from the Insurance Regulatory and Development Authority of India (IRDAI). This move was seen as an early step toward SEBI verification for financial ads, ensuring that only qualified professionals guide the public on money-related matters.

But still, fraud was there. In a popular case in 2023, SEBI fined a man called “Baap of Chart” for selling classes without having the proper license and for giving wrong guidance to the public. That year, SEBI also stopped another well-known trader and YouTuber, PR Sundar, for one year for not following adviser guidelines.

At the start of 2025, ASCI explained that simple tips about saving or telling benefits of insurance can be given without a SEBI license. But if you give a direct suggestion — like telling someone to purchase a certain stock, put money in a mutual fund, or begin a Systematic Investment Plan (SIP) — then you must have proper approval or the right certificate.

Meta enforces SEBI verification for financial ads in India to ensure transparency and protect investors.

Industry Praises SEBI Verification for Financial Ads

Many people think Meta’s new rule is a good move. Manisha Kapoor, the head of ASCI, said this step is important to keep people safe online who want advice about money. She also said her group will keep watching influencers and respond to complaints.

Popular content maker Ankur Warikoo, who talks about personal finance and business, said it is “the right choice.” He believes this change will make the information better and more trustworthy for everyone.

Danny Nathani, who leads marketing for Mirae Asset Sharekhan, also liked the decision. He said influencers helped a lot after COVID-19 by bringing many new people into the finance world. But now, it’s important to make sure only real and qualified people can promote these products. Nathani said this rule may lower Meta’s ad money at first, but later it will help make the market safer and protect customers from bad people.

Challenges and loopholes

Not everyone thinks this new rule will fix all issues. Lawyer Tanu Banerjee said that following the rules is not always strong. Some influencers find smart ways to avoid the rules, like putting their advice inside paid classes or mixing it with brand deals. She warned that as long as the system gives more value to popularity than following rules, there will be holes and investors can stay in danger.

Another worry comes from lawyer Pooja Rao Putrevu. She said the policy only covers paid ads. If a finance influencer shares free videos, reels, or posts on social media, the rule doesn’t apply to them. This means bad people can just avoid paying for ads but still trick people with free content. Warikoo also talked about this problem, saying free content is a big missing part in the rules.

It is also hard to say what counts as “advice.” SEBI’s meaning is more than just telling someone to “buy” or “sell.” Even giving hints or opinions about certain products can be called advice. Nathani said creators who only want to teach should focus on making a group and sharing general ideas. But if they start giving advice, they must follow the proper steps to become licensed advisers.

Some people also worry about too much control. Honest teachers or reporters might get flagged by mistake, making it hard for them to work until they get the right papers. Banerjee said this could stop real voices from joining the space.

Putrevu said there is another problem — influencers might move to places without rules. If Facebook and Instagram get too strict, some might go to apps like Telegram or WhatsApp, where Meta’s rules don’t work. This can confuse normal investors who don’t know which sites are safe.

Risk of fake compliance

One big problem is fake verification. Some influencers might use fake SEBI numbers or act like they are registered when they are not. Others hide behind phrases like “not financial advice” while still giving investment tips. This is more risky on free platforms where rules are weaker.

Putrevu said Meta should make a strong, live system to check SEBI details. She also said they should keep two lists: one safe list of real professionals allowed to run finance ads, and one bad list of people who break rules many times. Both lists should be updated often so brands and users can choose safely.

Kapoor from ASCI said platforms must keep making their tools better to find bad actors. These people always change their ways, using new kinds of content like short videos, interactive posts, or memes to promote finance products without license. If platforms don’t improve, these rules will be easy to break.

Warikoo said another problem is that policy does not clearly say how Meta will check SEBI numbers or how users can complain about fake ads. Without a good system to report and appeal, people can still get tricked by scams.

The road ahead

Meta’s new rule is a big move to clean up money ads in India. It adds on to old ASCI rules and SEBI laws, making another step to check investment ads before they show to people. 

Many people believe it will be hard for fake advisors to operate freely. But the rule has problems. The main issue is it doesn’t include free, organic content, so some can still skip the checks. It’s also needed to clearly say what “advice” means, improve the verification, and keep an updated list of reliable people to make this rule work better.

If Meta and other sites check all kinds of content — not only paid ads — and work closely with SEBI and ASCI, then dishonest influencers will find it much harder to fool people. Until that happens, investors should be careful, do their own study, and not trust anyone online without thinking.

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