Increased Transparency: Sebi Mandates Disclosure of Registration Numbers on Social Media Platforms

Increased Transparency: Sebi Mandates Disclosure of Registration Numbers on Social Media Plat...webp

New Delhi, February 26 The market regulator, Sebi, on Thursday directed all entities it regulates, along with their agents, to prominently disclose their registered name and registration number on social media platforms (SMPs) while posting content related to the securities market.

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

"Given the rapid increase in the use and acceptance of social media, there is a need to distinguish the content related to the securities market uploaded/posted by the entities regulated by the Board (hereafter referred to as 'regulated entities') and their agents on SMPs, from the content uploaded/posted by other unregistered persons," Sebi said in its circular.

"This will enable investors to identify that the content on the SMP(s) is uploaded by a Sebi-regulated entity or its agent. Thus, ensuring ease of investment for investors in the securities market," it added.

The regulator has asked entities with a single Sebi registration to display their registered name and number on the homepage of their social media handles and at the beginning of each post or video.

Those with multiple registrations need to provide a web link on their homepage listing all registrations and disclose the relevant registration details in each specific content.

Moreover, agents will be required to disclose the details of the principal entity's registration along with their own.

The new norms, aimed at enhancing transparency, strengthening investor protection, and distinguishing regulated entities from unregistered persons online, will come into effect from May 1, 2026.
 
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alternative investment funds asset management companies intermediaries investment advisors investor protection mutual funds portfolio managers registered name registration number research analysts sebi securities market social media platforms stock brokers transparency
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