SEBI Mandates Social Media Disclosure for Regulated Entities

By Business DeskSEBI Mandates Social Media Disclosure for Regulated Entities

SEBI requires regulated entities to disclose registered name & number on social media from May 1st to boost investor transparency. Learn more.

The Securities and Exchange Board of India (SEBI) has mandated that all regulated entities must prominently disclose their registered name and registration number when sharing securities market-related content on social media platforms. This directive, aimed at enhancing transparency, takes effect from **May 1st**.

This new regulation applies broadly to various entities under SEBI’s oversight, including stockbrokers, portfolio managers, mutual funds, and their associated intermediaries and agents. The primary objective is to empower investors to clearly distinguish between officially registered and regulated sources and content from unregistered individuals.

Scope of the New Mandate

The requirement for disclosure extends across a wide range of regulated entities, ensuring consistent adherence throughout the financial sector.

  • **Stockbrokers**
  • **Portfolio managers**
  • **Mutual funds**
  • Various intermediaries and agents, including **distributors**

SEBI’s mandate covers all forms of content related to the securities market, from videos to written posts and other published materials. This comprehensive approach ensures that the disclosure is present regardless of the content format.

Platforms Affected by the Rule

The new disclosure rules are comprehensive, encompassing both public platforms and private or semi-private groups across numerous popular social media channels.

  • **YouTube**
  • **Telegram**
  • **Instagram**
  • **Facebook**
  • **WhatsApp**
  • **X**
  • **LinkedIn**
  • **Reddit**
  • **Threads**

By enforcing this rule, SEBI aims to provide investors with the necessary tools to easily identify and trust information originating from officially registered and regulated sources. This initiative is crucial for helping investors make informed decisions by clearly differentiating credible content.

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