SEBI Introduces 'Verified App Label' to Combat Investment Fraud

The Securities and Exchange Board of India (SEBI) has unveiled a 'Verified App Label' for investment applications to help investors identify legitimate trading platforms. This initiative aims to enhance safety for the growing number of investors in India's securities market, which has reached a market capitalization of Rs 423 trillion. With over 600 apps already verified, SEBI encourages users to utilize tools like SebiCheck to confirm the authenticity of intermediaries. Recent government data highlights a concerning trend in stock trading fraud cases, underscoring the importance of this new measure. Read on to discover how this initiative will impact investors and the market.

By Narendra Chaudhary Mar 26, 2026, 12:04 IST

New Initiative by SEBI for Investor Protection

To safeguard investors from fraudulent activities, the Securities and Exchange Board of India (SEBI) has launched a new initiative that introduces a "Verified App Label" for investment applications. This label will be featured on the Google Play Store, allowing users to easily identify legitimate trading platforms. The initiative aims to provide a visual badge for SEBI-registered intermediaries, enhancing user confidence in their investment choices.

During the announcement, SEBI Chairman Tuhin Kanta Pandey emphasized the regulator's commitment to ensuring the safety of an expanding investor base, which now exceeds 140 million unique participants. He noted that India's securities market has reached a market capitalization of approximately Rs 423 trillion, indicating a substantial increase in market trust.

The verified badge has already been implemented for over 600 applications associated with SEBI-registered stockbrokers. Industry leaders have welcomed this move, with Nithin Kamath, Founder and CEO of Zerodha, praising it as a proactive step, stating, "This is a great and proactive move. The nuisance of unregistered advisory has only gotten worse."

Furthermore, the SEBI chief mentioned that an API-based framework is established to ensure that only verified registered intermediaries can advertise on platforms like Google and Meta. He encouraged investors to utilize the SebiCheck tool and the Saarthi app to confirm credentials before making any financial decisions. The SEBI Check tool assists investors in verifying the authenticity of bank accounts and UPI IDs of registered intermediaries.

Government statistics reveal that between FY 2019-20 and FY 2023-24, there were 6,717 reported cases of stock trading fraud, including insider trading and market manipulation. In FY 2019-20 alone, 2,071 cases were documented. The numbers fluctuated over the years, decreasing to 1,763 in 2020-21 and 1,813 in 2021-22. However, a notable decline occurred in 2022-23, with only 435 cases reported. In the latest fiscal year 2023-24, the number of fraud cases increased again to 635.