The Securities and Exchange Board of India (SEBI) has mandated that all entities under its regulation must prominently showcase their registered name and registration number when sharing securities market-related content on social media platforms. This directive, effective from May 1, applies to various entities like stock brokers, portfolio managers, mutual funds, and distributors. The aim is to assist investors in easily recognizing content from registered and regulated entities, distinguishing it from unregistered or unregulated sources on social media.
The requirement encompasses all forms of content, including videos, written posts, and other materials related to the securities market. It extends not only to public platforms but also to closed or semi-closed groups on platforms like YouTube, Telegram, Instagram, Facebook, WhatsApp, LinkedIn, Reddit, and Threads. Regulated entities and their agents are instructed to prominently display their registered name and registration number on their social media handles’ home page and mention these details at the start of every securities market-related video or post.
SEBI has observed instances of entities utilizing social media for coordinated stock manipulation and pump-and-dump schemes, leading to regulatory actions. By ensuring clear identification of regulated content, market participants believe investors can make more informed decisions and avoid misinformation. Entities with multiple registrations must provide a web link on their social media home page directing users to a page listing all their SEBI-registered names and registration numbers. Additionally, they must specify the particular registration under which the content is being published.
