Meta Uplifts Transparency: SEBI Verification Mandate for Securities Ads in India
In a bold move to enhance transparency and compliance, Meta has announced a new verification requirement for advertisers targeting Indian users with securities and investment advertisements. This groundbreaking policy, unveiled on June 26, 2025, is set to revolutionize how financial ads operate on major platforms like Facebook and Instagram.
Understanding the New Verification Requirements
Gone are the days of unverified claims in securities advertising. Under the new guidelines, all advertisers—including those conducting global campaigns—must verify their identities through the Securities and Exchange Board of India (SEBI) registration system. This initiative is not just an administrative requirement but a significant leap towards safeguarding consumers and fostering trust in financial advertising.
Key Details of the Initiative:
- Who: All securities and investment advertisers targeting users in India must complete SEBI registration verification or utilize alternative methods.
- What: Advertisements must disclose both beneficiary and payer information, including public display of SEBI registration numbers where applicable.
- When: The verification process is already underway, with enforcement starting on July 31, 2025, and full global compliance expected by July 28, 2025.
- Where: This requirement extends to all securities and investment ads aimed at Indian audiences across Facebook and Instagram.
- Why: The initiative strives to enhance regulatory compliance and provide better protection for consumers through full transparency in advertising.
Implementation Timeline Marks Accelerated Enforcement
The countdown begins! Compliance enforcement kicks off on July 31, 2025. Advertisers are advised to take immediate action to align with the new requirements, ensuring they are fully compliant in time.
Meta’s announcement stipulates that "All advertisers will have at least one month to complete these requirements from the date they become eligible to verify," emphasizing the urgency as the deadline approaches.
The Two-Step Verification Process
Meta’s verification framework consists of two crucial phases:
Verification of Beneficiary and Payer Information: Advertisers must confirm details about who profits from and pays for the ads. This is conducted through Meta’s advertising tools.
- Public Disclosure: After verification, selected beneficiary and payer details—like names and SEBI registration numbers—will be displayed on relevant advertisements. This information is not only vital for accountability but also remains visible for up to seven years in Meta’s Ad Library.
Technical Implementation Using API Parameters
For tech-savvy advertisers, the process allows for two methods to specify beneficiaries and payers:
- Default Settings in Ads Manager: Setting default information for campaigns.
- Specific Parameters: Including regulatory details for new ad sets.
Meta clarifies that active ads prior to July 31, 2025, don’t need modification if the account is verified, allowing some leeway for existing campaigns.
Analyzing the Broader Context of Regulatory Trends
This requirement isn’t occurring in isolation. Globally, there’s a mounting push towards increased transparency in financial services advertising. For instance, Google has initiated similar verification measures for debt services advertising in Ireland and other markets (see more on this here).
As oversight mechanisms tighten—beyond just financial services but across all advertising—Meta’s move aligns with growing regulatory expectations worldwide.
Marketing Implications for Securities Advertisers
The new rules pose both opportunities and challenges for advertisers:
- Operational Adjustments: Campaign timelines will need to adjust for verification processes, which could strain smaller financial services providers.
- Global Compliance: International firms must navigate these requirements to reach Indian consumers effectively, broadening their compliance obligations.
- Increased Complexity for Agencies: Agencies managing financial services clients will need to streamline verification processes to meet these new demands.
Driving Transparency Through Regulatory Compliance
Meta’s initiative is more than just a regulatory checkbox; it’s a transformative step toward increased accountability in advertising. With the seven-year retention period for ad data in Meta’s Ad Library, advertisers must understand the importance of compliance—not only for legal reasons but to build a reputation of integrity.
According to Meta’s official announcement, verification information will be "publicly displayed on the ads when they are running and for up to 7 years." This commitment to maintaining consumer trust is clear and crucial.
Conclusion: A New Era in Financial Advertising
Meta’s mandatory SEBI verification is poised to reshape the landscape of securities advertising in India. By establishing a framework for accountability, this initiative not only benefits consumers but sets a precedent for other advertising platforms to follow.
Advertisers, brace yourselves for a compliance journey that promises a brighter, more transparent future for financial services advertising!
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