Sebi Chief Warns of Fake Apps

Sebi Chief Tuhin Kanta Pandey said fake apps are a serious threat to investors. He warned that they can cause irreparable financial harm.

Regulator’s Numbers Show Urgency

Sebi’s cyber-cell has removed over 1.3 lakh web pages and shut down 66 counterfeit trading applications in the past 12 months. The regulator’s numbers show the urgency of the situation.

Regulatory Response

Sebi is building a pre-emptive shield against fake apps. The regulator has launched an initiative with Google to award a green “Sebi Verified” badge to applications that meet a compliance checklist.

How the Badge Works

• Developers submit their Sebi registration details through a secure portal.
• Google’s API checks the data against Sebi’s live database before the badge appears.
• Verified apps rise in the Play Store’s finance category, pushing unverified listings down.

The badge can help reduce the exposure of scam-laden apps by up to 70%.

Collaboration with Big Tech Companies

Google is working with Sebi to verify apps. Meta is also in talks to extend the verification cue to Instagram and WhatsApp ad placements.

How the Badge Works Developers submit their Sebi registration details through a secure portal.

Big-tech Liability Landscape

Google removed 3.2 million policy-violating apps in 2025, but only 8% of those takedowns originated from Indian regulators. Sebi hopes to tilt the balance by institutionalising a verification workflow.

Meta will require a valid Sebi registration certificate before any investment-app advertisement goes live. Non-compliance will trigger immediate suspension of the ad account.

Both firms have pledged quarterly “sunset reviews” with Sebi to exchange takedown metrics.

Protecting Investors from Financial Harm

The average lifespan of a fraudulent trading app in India is 19 days. Scammers can siphon between ₹50 crore and ₹75 crore from unsuspecting users during this time.

Targeted Demographics

India adds one million new demat accounts each month. Sebi projects the investor base will swell to 190 million by FY 28.

A striking 62% of the 2025 influx came from tier-2 and tier-3 cities, where digital literacy trails that of metropolitan hubs.

The Long-Term View: A Safer Financial Landscape

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Sebi’s badge model is attracting international attention. IOSCO has opened a working group to study the framework.

Regulators in Malaysia and Nigeria are in talks to pilot similar verification schemes this year.

Both firms have pledged quarterly “sunset reviews” with Sebi to exchange takedown metrics.

Future Rollout and Gaps

• Sebi aims to extend the badge to Samsung’s Galaxy Store and Apple’s App Store by December 2026.
• The system remains opt-in, leaving a residual risk of social-engineering attacks.
• Cross-border fund-tracing mechanisms are still nascent, limiting the regulator’s ability to reclaim assets held overseas.

The partnership between regulators and tech giants could become the cornerstone of a more resilient ecosystem.