SEBI's Verified App Label Fights Fraud, Protects 140M+ Investors

Addressing the launch, Pandey said, "I'm delighted to be here at the launch of the Verified App Label Initiative, a simple but important investment protection measure. This initiative is not just about a label on an app, it's about trust and safety. It's about helping investors distinguish the genuine from the fake. India's securities market is witnessing wider participation than ever before."

The initiative provides a visual badge for SEBI-registered intermediaries on the Google Play Store to help users distinguish authentic platforms from impersonators. He noted that the regulator is prioritizing the safety of a rapidly expanding investor base that now exceeds 140 million unique participants. He explained that India's securities market currently holds a market capitalization of close to Rs 423 trillion, reflecting a significant growth in market trust.

"Today, we have more than 140 million unique investors in the securities market, with market capitalization close to 423 trillion rupees. These numbers reflect growing trust in markets," he said.

However, he warned that this surge in participation brings a heightened responsibility to protect first-time investors, particularly as the point of entry into the market has shifted almost entirely to mobile devices.

The Chairman pointed out that the digital nature of modern investing has created new vulnerabilities for the public. "Today, for many investors, the market begins on a screen. It begins with an app. But where access becomes digital, so does a risk," he remarked.

According to Pandey, "fake apps are now a serious threat and can cause irreparable financial harm," leading not just to financial loss but to a broader loss of investor confidence.

To address these risks, the verified badge has already been rolled out for over 600 apps belonging to SEBI-registered stockbrokers. Pandey emphasized that the visual cue reinforces a fundamental principle for all market participants: "Pehle pehchan karen, phir nivesh karen. First verify, then invest."

He mentioned that the regulator intends to extend this badge to other registered intermediaries, such as online bond platform providers and registered investment advisors, to ensure a uniform safety standard across the digital ecosystem.

The initiative builds on existing SEBI measures, including validated UPI handles and a whitelist of stockbrokers' mobile applications maintained by exchanges. Pandey noted that "more than 1.3 lakh of such content has been escalated to the platforms for take down. Around 66 cases of fake trading apps have been escalated to app stores, which have been taken down."

"An API-based framework is in place to ensure that only verified registered intermediaries can run advertisements on Google and Meta," he said, adding that "regulators, intermediaries, and big tech must work together as investor protection is a shared responsibility."

The Chairman acknowledged that while the Google Play Store badge is a "landmark first of its kind initiative," challenges like side-loading and unofficial links remain serious risks. He urged investors to utilize the SebiCheck tool and the Saarthi app to verify credentials before making any financial commitments.

"For our growth story to remain strong, trust must remain at the center. Safer technology builds trust," Pandey concluded, reiterating that "in a digital world, that may be the difference between safe investing and real financial harm."

- ANI