Context:
The Securities and Exchange Board of India (SEBI) has proposed new guidelines for regulated entities and their agents regarding social media usage. The move aims to enhance transparency and protect investors from misleading content.
Key Proposals
1. Mandatory Display of Registration Details
- All SEBI-regulated entities and their agents (e.g., mutual fund distributors, PMS distributors) must prominently display:
- Registered name
- SEBI registration number
- Display must be on:
- The home page of their social media platforms
- Alongside each video or content posted
2. Content Standards and Restrictions
- Social media posts must not contain:
- Promises of guaranteed returns
- Statements prohibited under law
- False, misleading, biased, or investor-misguiding content
3. Purpose of the Guidelines
- Differentiate content posted by registered SEBI entities from unregistered individuals.
- Prevent investors from being misled by unverified or illegal financial content.
- Ensure accountability and transparency of content shared on social media.
