SEBI has launched the ‘Verified App Label Initiative’ to help investors identify genuine trading apps and curb digital fraud.
The Securities and Exchange Board of India (SEBI) has launched the ‘Verified App Label Initiative’ to assist investors in identifying genuine trading and investment applications. This initiative is a significant step towards curbing digital fraud and enhancing investor protection in India’s rapidly evolving financial landscape.
Under this initiative, only apps belonging to SEBI-registered entities will carry the verification mark, ensuring that investors can trust the platforms they use. Tuhin Kanta Pandey, a key official at SEBI, emphasized the importance of this initiative, stating, “This initiative is not just about a label on an app; it is about helping investors distinguish the genuine from the fake.” Over 600 financial services apps have already been assigned the verified label, marking a substantial effort to combat misleading investment-related content.
SEBI has flagged over 130,000 instances of such misleading content for takedown, demonstrating its commitment to maintaining a safe investment environment. The rise in digital fraud has prompted these measures, as the number of unique investors in India’s securities market has reached 140 million, with a market capitalization of approximately ₹42.3 trillion.
In addition to the app verification initiative, SEBI is also introducing new regulations for Gold Exchange-Traded Funds (ETFs). Effective from April 1, 2026, the master circular for Gold ETFs will require these funds to invest at least 95% of their net assets in physical gold and SEBI-approved gold-related instruments. HDFC Asset Management Company has indicated that investment in exchange-traded commodity derivatives will be considered only in rare situations, such as temporary shortages of physical gold.
The maximum percentage of net assets that Gold ETFs can invest in gold-related instruments is set at 50%, while a maximum of 20% can be allocated to Gold Deposit Scheme and Gold Monetization Scheme. This structured approach aims to ensure that the core focus of Gold ETFs remains on physical gold investment.
As SEBI continues to remove dozens of fake trading apps from app stores, the verified badge initiative stands out as a first-of-its-kind effort globally. Tuhin Kanta Pandey reiterated the importance of this initiative, stating, “The verified badge will help investors identify genuine apps and make impersonation harder.” He concluded with a call to action: “First verify, then invest.”
Details remain unconfirmed regarding the full impact of these initiatives, but observers expect that these measures will significantly enhance investor confidence and safety in the digital investment space.
