SEBI Issues Fresh Social Media Disclosure Norms For Regulated Entities

The Securities and Exchange Board of India (SEBI) has directed all regulated entities to clearly display their registered name and registration number. A disclaimer will be required to be posted when content relating to the securities market is posted on social media.

The move is aimed at helping investors easily distinguish between authorised market participants and unregistered individuals who publish financial content online. The new requirement will take effect on 1 May 2026.

Who Will The Rule Apply To?

The directive encompasses a broad scope of entities regulated by SEBI, such as stockbrokers, portfolio managers, mutual funds, intermediaries and distributors.

It applies to all forms of content, such as videos, text posts, and other published material, shared across public and private, or semi-private, digital platforms. These platforms are YouTube, Telegram, Instagram, Facebook, WhatsApp, X, LinkedIn, Reddit, and Threads.

Under the new norms, regulated entities and their agents must prominently display their registered name and SEBI registration number on the homepage of their social media accounts. In addition, every market-related video or post must clearly mention the relevant registration details at the beginning of the content.

If an entity holds multiple registrations, it must provide a link on its social media homepage that directs users to a page listing all its SEBI-registered identities and numbers. The nature of the registration in which the content is being shared should also be made known in advance.

Why Is SEBI Tightening Oversight?

In recent years, SEBI has taken action against several entities accused of misusing social media to run coordinated market manipulation campaigns, including pump-and-dump schemes.

The regulator believes clearer identification of authorised sources will reduce confusion and help investors verify whether the information they are consuming comes from a legitimate, regulated entity.

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What Does This Mean For Investors?

For investors, the rule adds an extra layer of transparency. It makes it easier to verify that the financial content is being shared by a regulated entity.

It will help reduce the risk of acting on advice from unauthorised sources. While it may not eliminate misleading information entirely, the measure strengthens accountability. This would also improve trust in digital financial communication.

Sources:

Business Standard

Money Control