SEBI’s new ‘Verified’ app label: A simple check that could save your money from fraud

The regulator flagged the growing danger from fake apps, saying, “The proliferation of fraudulent trading apps has posed a serious threat to retail investors.” These apps often mimic genuine platforms, tricking users into transferring money outside the regulated financial system.

SEBI Chairman Tuhin Kanta Pandey echoed the concern, stating, “Fake apps are now a serious threat and can cause irreparable financial harm.” He added that “regulators, intermediaries and big tech must work together as investor protection is a shared responsibility.”

What this means for you

This simple visual cue is designed to help users avoid downloading fake apps and transact more safely. The rollout will initially cover around 600 broker apps and expand to other intermediaries later.

Why this matters now

India’s retail investing boom, now with over 140 million investors, has also made individuals more vulnerable to digital fraud. SEBI noted it has already removed over 1.3 lakh misleading pages and 66 fake trading apps.

Calling the initiative a step-change, the regulator said its collaboration with Google “represents a major breakthrough in the ongoing battle against bad actors in the investment space.”

SEBI’s safety mantra: CVV

For investors, SEBI is pushing a simple rule: “Pehle Pehchaan Kare, Fir Nivesh Kare!” (Identify first, then invest).

It also outlined a three-step safety framework:

“Follow SEBI’s ‘CVV’: Check, Validate and Verify.”

• Check bank account details using SEBI tools

• Validate UPI IDs marked as ‘Valid’

• Verify apps via the new ‘Verified’ badge

Pandey also advised investors to adopt a cautious approach: “pause, verify and proceed.”

Big tech’s role

Google Play India MD Aditya Swamy called the initiative a “unique public-private partnership towards the shared objective of investor protection.”

The regulator said the move marks a significant step in strengthening safeguards in India’s rapidly expanding retail investment ecosystem.