SEBI Mandates Disclosure of Registration Details on Social Media Effective May 1
Synopsis
In a significant move, SEBI has instructed regulated entities to display their registration details on social media. This directive, effective from May 1, aims to enhance transparency for investors navigating the securities market online.
Key Takeaways
SEBI requires clear registration disclosures on social media.
Effective from May 1, 2023.
Aims to protect investors from misleading information.
Applies to various social media platforms.
Entities with multiple registrations must provide a comprehensive link.
Mumbai, Feb 26 (NationPress) On Thursday, the Securities and Exchange Board of India (SEBI) mandated that all entities under its regulation must prominently showcase their registered name and registration number when sharing content related to the securities market on social media platforms.
This new regulation will take effect from May 1 and will be applicable to stock brokers, portfolio managers, mutual funds, and various intermediaries and agents, including distributors.
SEBI's initiative aims to assist investors in easily recognizing the content shared by registered entities and distinguishing it from posts made by unregulated individuals operating on social media.
According to the circular, this requirement encompasses all forms of content, including videos, written posts, and other materials linked to the securities market.
The rule will apply to both open platforms and private or semi-private groups across platforms such as YouTube, Telegram, Instagram, Facebook, WhatsApp, X, LinkedIn, Reddit, and Threads.
SEBI stated that regulated entities and their representatives are required to display their registered name and registration number prominently on the homepage of their social media accounts. Additionally, these details must be included at the start of every video or post concerning the securities market.
The regulator pointed out that it has previously taken action against multiple entities for leveraging social media to execute coordinated stock manipulation and pump-and-dump schemes.
Market participants are optimistic that clearer identification of regulated content will empower investors to make more informed choices and steer clear of misleading information.
Furthermore, SEBI clarified that entities with multiple registrations must provide a link on their social media homepage directing users to a page that lists all their SEBI-registered names and registration numbers. They should also specify under which particular registration the content is being published.
Point of View
SEBI's new directive is a proactive step towards ensuring transparency in the securities market. By requiring regulated entities to disclose their registration details, it promotes accountability and helps investors make informed decisions.
NationPress
11 May 2026
Frequently Asked Questions
What is the new requirement introduced by SEBI?
SEBI has mandated that all regulated entities display their registered name and registration number while posting securities market-related content on social media.
When does this new rule take effect?
The new rule will come into effect on May 1.
Who does this directive apply to?
The directive applies to stock brokers, portfolio managers, mutual funds, and other intermediaries and agents.
What forms of content does this requirement cover?
It covers all types of content, including videos, written posts, and other materials related to the securities market.
How will this impact investors?
It will help investors easily identify credible content and avoid misleading information shared by unregulated entities.
