Source: ET
Context:
The Securities and Exchange Board of India (SEBI) has issued a new circular requiring all SEBI-registered market intermediaries to disclose their registered name and SEBI registration number while posting securities market-related content on social media platforms.
The move aims to curb financial misinformation and protect retail investors from unregistered influencers and fraudulent entities.
What is the Directive?
It is a regulatory mandate requiring SEBI-regulated entities and their agents to:
- Prominently display their registered identity.
- Mention their SEBI registration number.
- Ensure transparency in all securities-related digital communications.
Objective of the Rule
- Enable investors to clearly differentiate between:
- Authorised SEBI-regulated intermediaries
- Unregistered financial influencers (“finfluencers”)
- Strengthen transparency and accountability in digital investment advice.
- Enhance investor protection amid rising social media-driven financial scams.
Key Features of the Circular
1. Mandatory Identity Disclosure
- The registered name and SEBI registration number must:
- Appear on social media profiles.
- Be displayed at the beginning of each securities-related post, video, or advisory content.
2. Wide Applicability
The rule applies to a broad range of SEBI-regulated entities, including:
- Stockbrokers
- Mutual Funds
- Investment Advisers
- Research Analysts
- Portfolio Managers
- Alternative Investment Funds (AIFs)
- Asset Management Companies (AMCs)
- Real Estate Investment Trusts (REITs)
- Infrastructure Investment Trusts (InvITs)
- Distributors and agents of these entities
3. Broad Platform Coverage
The mandate covers both open and closed digital platforms, including:
- YouTube
- Telegram
- X (formerly Twitter)
- Threads
- Closed and semi-closed groups
4. Multiple Registration Rule
- Entities holding multiple SEBI registrations must:
- Provide a web link listing all registration details.
- Mention only the relevant registration number in individual posts.
