India’s market regulator SEBI dropped a bombshell on Thursday, ordering all intermediaries like brokers, portfolio managers, mutual fund houses, and agents to slap their SEBI registration numbers on social media content about securities. Effective from May 1, this rule targets the exploding world of online financial chatter.
From Instagram reels to Telegram channels and YouTube videos, no post escapes scrutiny if it discusses stocks or markets. The homepage of every social handle must scream the entity’s registered name and number. Every single piece of content – be it a tweet on X, LinkedIn update, or WhatsApp status – starts with these mandatory disclosures.
Why now? SEBI has been battling a surge in social media-fueled scams, including orchestrated stock pumps and dumps that lure unsuspecting investors. The circular highlights recent enforcement actions against such bad actors.
For firms juggling multiple registrations, a dedicated webpage link is compulsory, detailing all credentials. Content creators must clarify which registration applies to the specific post.
Industry watchers predict this will clean up the digital space. ‘Investors will finally have a litmus test for authenticity amid the noise of influencers and tipsters,’ remarked a Mumbai-based fund manager.
This isn’t just paperwork – it’s a shield against deception. As retail participation skyrockets via apps and social feeds, SEBI’s mandate promises greater accountability. Savvy investors, take note: check for those reg numbers before you trade.