Google and SEBI introduce verified labels for investment apps in India to address fraud

Google is introducing a verification system for investment apps on its Play Store in India, as part of a joint initiative with the Securities and Exchange Board of India (SEBI) aimed at reducing the spread of fraudulent trading platforms.

Under the new framework, only apps operated by brokers and intermediaries registered with SEBI will be eligible to display a “Verified” badge. The label is intended to help users distinguish legitimate investment services from fake applications that mimic established platforms.

The move follows a rise in scams involving counterfeit trading apps, which have been used to mislead investors into believing their funds are being directed into regulated markets. According to SEBI, these schemes have posed a growing risk to retail investors by exploiting the credibility of recognized financial brands.

The verification badge will initially apply to stock trading apps listed on the Google Play Store, with plans to expand the system to other categories of regulated financial intermediaries over time. The initiative represents a coordinated effort between regulators and platform providers to address gaps in user protection within digital marketplaces.

As part of the rollout, SEBI has also outlined a broader investor awareness framework encouraging users to verify financial services before engaging with them. This includes checking account details, validating payment identifiers, and confirming whether an app carries the official verification label.

Google has described the initiative as part of a wider effort to enhance safety on its platform through partnerships with regulatory bodies. The company indicated that it may pursue similar collaborations in other markets where financial fraud linked to mobile apps is a concern.

The introduction of verified labels comes amid increasing scrutiny of app marketplaces and their role in preventing the distribution of misleading or harmful financial tools. The effectiveness of the system will likely depend on user adoption and the ability to maintain up-to-date verification standards as new apps enter the ecosystem.