SEBI Launches Verified App Label to Combat Rising Investment Scams

In a decisive move to strengthen investor protection in the digital era, the Securities and Exchange Board of India (SEBI) has rolled out a new initiative aimed at tackling the rising threat of online investment fraud.

On Wednesday, SEBI Chairman Tuhin Kanta Pandey introduced the Verified App Label Initiative, designed to help investors clearly identify authentic financial applications. With scams becoming more sophisticated, the initiative offers a simple yet effective way for users to separate legitimate platforms from fraudulent ones.

Chairman, SEBI, further mentioned that this collaboration between SEBI and Google represents a major breakthrough in the ongoing battle against bad actors in the investment space. Page 2 of 2 Google Play, MD, Mr. Aditya Swamy, mentioned that this is a unique public-private partnership towards the shared objective of investor protection and that Google would be keen to further collaborate for further such initiatives

How the Verified Badge Works

Under the new system, apps operated by SEBI-registered intermediaries, including stockbrokers and other regulated entities, will feature a verified badge on the Google Play Store. This visual marker provides instant reassurance that the app has been vetted and is linked to a duly registered entity, making it easier for investors to make safer choices.

Phased Rollout Across Intermediaries

The initiative will initially cover over 600 apps belonging to SEBI-registered stockbrokers. Over time, the regulator plans to extend the verification badge to other categories of intermediaries, broadening its protective reach across the financial ecosystem.

Part of a Wider Anti-Fraud Push

The Verified App Label is one component of SEBI’s larger strategy to combat digital fraud. The regulator has already flagged more than 1.3 lakh misleading investment-related posts for removal and identified around 66 fraudulent trading apps for action by app stores.

In addition, an API-based mechanism now ensures that only verified intermediaries can place advertisements on major platforms like Google and Amazon, adding another layer of investor protection.

Also Read: SEBI Proposes Mutual Fund Gift Cards: Prepaid Investment Instruments Under Review 

Driving Awareness and Confidence

Recognising that safety tools are only effective when widely understood, SEBI is also working on an integrated investor awareness campaign. The goal is to ensure that users not only notice the verified badge but also understand its importance.

As India’s capital markets continue to expand and digitise, SEBI has underscored that trust and transparency must remain at the core of this growth story.

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