SEBI Mandates Social Media Disclosure for Regulated Entities
By Business Desk
SEBI mandates regulated entities to display registered name & number on social media from May 1st to aid investor identification and transparency in the securities market.
The Securities and Exchange Board of India (SEBI) has mandated that all entities it regulates must prominently disclose their registered name and registration number. This directive applies whenever they publish content related to the securities market on social media platforms, ensuring clarity for investors.
This measure, issued via a circular, is set to become effective from May 1st. SEBI’s objective is to empower investors by helping them clearly distinguish between information provided by officially registered and regulated entities versus that disseminated by unregistered or unregulated individuals or groups operating online.
Broad Applicability Across Platforms and Entities
The new regulations encompass a wide range of intermediaries and agents within the securities market, including stockbrokers, portfolio managers, and mutual funds. These entities are now required to adhere to the disclosure rules across their digital communications.
The requirement covers all forms of content, such as videos, written posts, and other published materials. This mandate extends across both open and closed social media environments, including popular platforms like YouTube, Telegram, Instagram, Facebook, WhatsApp, X, LinkedIn, Reddit, and Threads.
By enforcing this clear identification, SEBI aims to enhance investor protection within the rapidly evolving digital landscape. The move is designed to foster greater transparency and trust, enabling individuals to make more informed investment decisions based on reliable sources.