SEBI Launches Verified App Label Initiative To Curb Fake Investment Apps

The Securities Exchange Board of India (SEBI) has launched a Verified App Label Initiative to ensure that investors only invest in genuine apps and not be victims of fraudulent activities, announced SEBI Chairman Tuhin Kanta Pandey. The initiative has seen over 600 stockbroker apps feature the verified app label on the Google Play Store.

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Verified Badge Rolled Out For Stockbroker Apps

According to SEBI, the verified badge has already been deployed for more than 600 apps of registered stockbrokers on the Google Play Store. The regulator stated that the rollout will be phased to include other categories of SEBI-registered intermediaries.

The label serves as a visual cue, reassuring users that the app is affiliated with a legitimate, registered organization. This helps to mitigate the chances of users being misled by deceptive platforms.

Pandey stated that the initiative is part of SEBI’s broader effort to strengthen safeguards in the digital investment ecosystem and improve investor awareness.

Rising Instances Of Fraudulent Apps

SEBI said it has been actively monitoring digital platforms for misleading and fraudulent investment-related content. According to data shared by the regulator, more than 1.3 lakh such instances have been flagged and escalated to platforms for removal.

In addition, around 66 cases of fake trading applications were reported to app stores and subsequently taken down, according to SEBI.

The regulator also said that fraudulent apps usually look like legitimate ones, which makes it hard for users to know which ones are real and which ones are not.

Focus On Preventive Measures

The SEBI stated that the initiative for the verified app label is aimed at preventing fraud before it occurs.

The emphasis has been on a verification-first approach, where the regulator has advised investors to only invest through authenticated and recognized investment platforms.

The introduction of the verified badges would also increase transparency in the online investment arena and facilitate the safe participation of retail investors in the online financial services segment, which is already growing under the SEBI umbrella.