The Securities and Exchange Board of India (SEBI) is ramping up oversight of social media with a landmark circular issued today. All regulated players – think stock brokers, investment advisors, mutual funds, and distributors – now have to showcase their official SEBI name and registration ID across digital platforms.
Kicking in on May 1, the rule applies universally: Facebook pages, Instagram stories, YouTube channels, X threads, LinkedIn articles, Reddit discussions, Telegram groups, WhatsApp broadcasts, and beyond. No exceptions for any securities-related material.
At its core, the policy seeks to arm investors with easy verification tools. In an era where viral posts can swing markets, distinguishing SEBI-approved voices from imposters is crucial. SEBI pointed to its track record of busting social media-driven manipulations like pump-and-dump frauds.
Practical requirements are straightforward yet rigorous. Social profiles’ homepages get the spotlight treatment for reg details. Every video opens with them; every post mentions them upfront. Multi-reg entities link to a full disclosure page and tag the relevant registration.
Financial pundits applaud the clarity it brings. ‘This levels the playing field, letting investors filter out the fakes and focus on credible advice,’ opined a leading brokerage head.
Looking ahead, this could reshape how financial pros engage online, fostering trust in a crowded digital marketplace. For everyday investors scrolling feeds for stock ideas, it’s a vital reality check.