SEBI Mandates Registered Name & Registration Number Disclosure on Social Media

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
• Instagram
• WhatsApp
• Telegram
• X (formerly Twitter)
• Facebook
• LinkedIn
• Reddit
• 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.