Fake trading apps: Sebi chairman urges Google and Meta to support investor protection

Sebi Chairman Tuhin Kanta Pandey said fake applications pose a serious risk to investors. Pandey asked technology firms such as Google and Meta to coordinate with financial regulators. Pandey said the aim is to protect investor trust as market participation rises. Pandey spoke at an event launching a verified app label initiative with Google.

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Pandey said India now has 140 million unique investors across markets. Pandey also said overall market capitalisation has crossed Rs 423 lakh crore. Pandey warned that a new surge in investor participation is expected soon. Pandey said the next phase makes investor protection even more urgent.

Fake apps and Sebi investor protection

Pandey said fake apps can cause "irreparable financial harm\" to users. Pandey said Sebi tries to build checks before any damage happens. Pandey added that regulators, intermediaries and big tech share responsibility for investor protection. Pandey said collaboration is needed to reduce risks across platforms and services.

Pandey said Sebi has acted against harmful online material across platforms. Pandey said Sebi has taken down over 1.3 lakh pages of content. Pandey also said Sebi removed 66 fake trading apps. Pandey said Sebi moved after sensing the apps would harm investors.

Verified app label initiative and Google Play Store

Pandey said the new initiative gives verified badges to apps on Google’s Play Store. Pandey said users can transact more safely after seeing the badge. Pandey said the programme starts with 600 apps from stock brokers. Pandey said other intermediaries will join later, including registered investment advisors and online bond platforms.

Pandey said the verified badge initiative is a \"pioneering effort\". Pandey said other jurisdictions worldwide are expected to follow such steps. Pandey also advised investors to stay cautious during app use. Pandey urged investors to use a \"pause, verify and proceed\" approach.

At the same event, Sebi whole-time member KC Varshney spoke about preventing misuse. Varshney said, \"we need to work out ways of ensuring that app stores do not host the wrongful apps at all.\" The remarks came as Sebi highlighted rising fraud risks. The regulator linked the issue to greater investor activity and online access.

With inputs from PTI