Mumbai: The Securities and Exchange Board of India (SEBI) on Thursday directed all entities regulated by it to clearly display their registered name and registration number while posting securities market-related content on social media platforms.
The new rule will come into effect from May 1. The directive will apply to stock brokers, portfolio managers, mutual funds and other intermediaries and agents such as distributors.
SEBI said the move is aimed at helping investors easily identify content shared by registered and regulated entities and distinguish it from posts by unregistered or unregulated players operating on social media.
As per the circular, the requirement will cover all types of content, including videos, written posts and other material related to the securities market.
It will apply not only to open platforms but also to closed or semi-closed groups on platforms such as YouTube, Telegram, Instagram, Facebook, WhatsApp, X, LinkedIn, Reddit and Threads.
SEBI said regulated entities and their agents must prominently display their registered name and registration number on the home page of their social media handles. They must also mention these details at the beginning of every video or post related to the securities market.
The regulator noted that in recent years, it has taken action against several entities for using social media platforms to run coordinated stock manipulation and pump-and-dump schemes.
Market participants believe that clearer identification of regulated content will help investors make more informed decisions and avoid misleading information.
SEBI further clarified that entities holding multiple registrations will have to provide a web link on their social media home page that directs users to a page listing all their SEBI-registered names and registration numbers. In addition, they must clearly state under which specific registration the content is being published.
(IANS)
