Securities and Exchange Board of India Tightens Social Media Rules, Requires Disclosure Registration

Sebi Tightens Transparency Norms for Regulated Entities on Social Media

Key Highlights:

• The Securities and Exchange Board of India (Sebi) has issued a circular directing all regulated entities to disclose their registered name and registration number on social media platforms.
• The move aims to distinguish content posted by registered entities from that of unregistered individuals, thereby strengthening investor protection and promoting ease of doing business.
• The circular applies to intermediaries registered under Section 12 of the Sebi Act, including stockbrokers, depository participants, portfolio managers, and investment advisers.

Background:

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The growing influence of social media on investor behavior has led to a surge in market-related content online. A Sebi survey conducted last year found that 62% of retail investors rely on finfluencer recommendations for investment decisions, often ignoring formal advisory channels.

Disclosure Requirements:

• Entities with a single Sebi registration must display their registered name and registration number near the handle name on the home page and at the start of each piece of content.
• Entities with multiple Sebi registrations must provide a weblink directing users to their website listing all Sebi-registered names and registration numbers, and disclose only the relevant registration details at the beginning of each video or post.
• Agents of regulated entities, including mutual fund distributors, authorized participants, and distributors of portfolio management services, must also comply with the disclosure requirements.

Effective Date:

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The provisions will apply to all content uploaded on or after 1 May 2026. Existing content posted prior to that date is not covered under the circular.