SEBI Social Media Rule: Show Name and Registration Number
Why in the news
SEBI has told all registered market intermediaries to display who they are whenever they post about securities on social media. The step is aimed at fake advice and unregistered influencers.
Key facts
- Disclosure: registered name plus SEBI registration number.
- Placement: the profile itself, and the opening of every post, video or advisory item on securities.
| Covered entities | Platforms covered |
|---|---|
| Stockbrokers, Mutual Funds | YouTube, Instagram |
| Investment Advisers, Research Analysts | X (formerly Twitter), Facebook |
| Portfolio Managers, AIFs, AMCs | LinkedIn, Reddit, Threads |
| REITs, InvITs, their distributors and agents | Closed and semi-closed groups |
Objectives
- Let investors tell authorised intermediaries apart from unregistered finfluencers.
- Protect investors from social media-led scams.
Exam angle
- Regulator: Securities and Exchange Board of India (SEBI).
- Key term: finfluencers, meaning unregistered financial influencers.
- Agents and distributors of the listed entities are covered too.