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SEBI’s Directive on Social Media Advertising for Intermediaries

<h2 class&equals;"wp-block-heading">Understanding SEBI&&num;8217&semi;s New Guidelines<&sol;h2>&NewLine;&NewLine;<p>The Securities and Exchange Board of India &lpar;SEBI&rpar; has issued a critical directive aimed at ensuring compliance among financial intermediaries in their advertising practices on social media platforms&period; This initiative emphasizes the importance of using verified registered contact details when engaging with potential clients online&period; By mandating this standard&comma; SEBI aims to enhance transparency and protect investors from misleading information&period;<&sol;p>&NewLine;&NewLine;<h2 class&equals;"wp-block-heading">Importance of Registered Contact Details<&sol;h2>&NewLine;&NewLine;<p>Utilizing registered contact details is crucial for financial intermediaries as it fosters trust between them and their clientele&period; Discrepancies in contact information can lead to confusion and potential financial misadventures&period; SEBI&&num;8217&semi;s directive acts as a shield against fraudulent practices while reinforcing accountability in the financial sector&period; By adhering to these guidelines&comma; intermediaries can not only comply with regulatory expectations but also build a stronger rapport with investors&period;<&sol;p>&NewLine;&NewLine;<h2 class&equals;"wp-block-heading">Implications for Social Media Advertising<&sol;h2>&NewLine;&NewLine;<p>Social media platforms have become vital channels for advertising in the financial industry&period; However&comma; as highlighted by SEBI&comma; it is essential for intermediaries to leverage registered contact information effectively&period; This requirement means that intermediaries must rethink their advertising strategies to ensure they align with SEBI&&num;8217&semi;s standards&period; By doing so&comma; they can mitigate legal risks associated with non-compliance while enhancing their brand reputation among consumers&period;<&sol;p>


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