India Moves to Tag Verified Trading Apps as Fake Platforms Continue to Circulate on App Stores

Securities and Exchange Board of India has launched a Verified App Label initiative, introducing a visible badge on the Google Play Store for mobile applications operated by registered intermediaries. The rollout currently covers more than 600 stockbroker apps and is expected to expand to other regulated entities.

The move follows a sustained increase in fraudulent applications impersonating licensed brokers. These apps typically replicate branding, interface design, and trading dashboards, presenting themselves as legitimate platforms offering access to equities, derivatives, or crypto-linked products. Victims are often directed to download the apps through social media promotions or messaging channels, where investment opportunities promising fixed or high returns are introduced.

Once installed, users are shown simulated account balances and trading activity. Deposits made through in-app instructions are not routed to regulated markets but diverted through third-party payment channels or accounts controlled by operators. In many cases, withdrawals are blocked after initial transactions, with additional payments requested under the pretext of unlocking funds.

According to SEBI Chairman Tuhin Kanta Pandey, more than 130,000 instances of misleading investment-related content have already been escalated to digital platforms for removal. At least 66 fake trading apps have been identified and taken down from app stores.

The regulator has also implemented an API-based framework requiring that only verified, registered entities can place financial advertisements on platforms such as Google and Meta. The verified app label adds another layer, targeting the point where users download applications rather than where scams originate.

The initiative reflects a shift in enforcement focus. Instead of addressing fraud after funds are transferred, regulators are attempting to reduce exposure at the entry stage, where users decide which platform to trust.

As retail participation in India’s securities market continues to expand, the effectiveness of this approach will depend on whether verification signals can keep pace with the speed at which fraudulent apps are replicated and redistributed.