Sebi's New Directive: Social Media Transparency for Financial Entities

New Guidelines for Financial Entities on Social Media

New Delhi: On Thursday, the Securities and Exchange Board of India (Sebi) mandated that all regulated entities, along with their representatives, must clearly display their registered name and registration number on social media platforms when sharing content related to the securities market.

This directive encompasses stock brokers, mutual funds, asset management companies (AMCs), investment advisors, research analysts, alternative investment funds (AIFs), portfolio managers, and various other intermediaries.

Sebi emphasized the growing significance of social media, stating that it is essential to differentiate between content posted by regulated entities and that from unregistered individuals. This initiative aims to help investors easily identify credible sources of information.

To comply, entities with a single Sebi registration must showcase their registered name and number on their social media profiles and at the start of each post or video. For those with multiple registrations, a link must be provided on their homepage that lists all registrations, along with relevant details in each specific post.

Additionally, agents are required to include the registration information of their principal entity alongside their own.

These new regulations, designed to boost transparency and enhance investor protection by clearly distinguishing regulated entities from unregistered individuals online, will take effect on May 1, 2026.