India tightens social media rules for securities market to combat misinformation
India’s market regulator SEBI introduces stricter social media disclosure rules for registered entities, aiming to enhance transparency and curb misleading investment content online from May 1.
India’s market regulator SEBI introduces stricter social media disclosure rules for registered entities, aiming to enhance transparency and curb misleading investment content online from May 1.
India’s market regulator has issued a fresh directive tightening how SEBI‑registered firms and their authorised agents present securities‑related material on social media, with the rules coming into force on May 1. According to the Economic Times, the circular compels regulated entities to make their registration details plainly visible so investors can readily distinguish regulated commentary from unregistered advice. [2],[3]
The circular requires that the registered name and SEBI registration number be displayed prominently on the home page of social media profiles and also be stated at the start of any post, video, reel or message that discusses the securities market. Zee Business reports the requirement extends across a broad set of platforms, including YouTube, X, LinkedIn, Threads, Telegram, Reddit and WhatsApp, and stresses that disclosures must be clear and readable rather than hidden in lengthy disclaimers. [1],[2]
SEBI’s mandate applies to a wide range of intermediaries and agents: mutual fund distributors, investment advisers, portfolio management services distributors, research analysts and other SEBI‑registered entities sharing market content. The Economic Times coverage notes the rule is intended to cover both institutional accounts and individuals acting on behalf of registered firms. [3],[2]
Regulators describe the move as part of a wider attempt to rein in unregulated “finfluencers” who dispense market views and tips without being subject to oversight. Zee Business highlights SEBI’s aim to improve transparency and accountability so investors know who is behind investment commentary, while Business Standard records the regulator’s recent takedown activity, noting more than 70,000 misleading posts and accounts have been removed since October 2024 as platforms and SEBI cooperated to tackle deceptive content. [1],[7]
Separately, SEBI has for some time required registered intermediaries placing advertisements to verify contact details via the SEBI SI Portal; reports in The Economic Times and the Times of India say intermediaries must update those contact details by April 30, 2025, as part of advertiser verification steps designed to curb fraud. Industry moves by platforms reflect similar aims: Meta will require SEBI registration verification for advertisers targeting Indian users, with SEBI details to be publicly displayed on investment ads from July 31, 2025, according to reporting. [4],[5],[6]
SEBI has warned that failure to comply will attract regulatory action under existing rules, including monetary penalties. The Economic Times and Zee Business both report that market participants are expected to update profile and content practices ahead of the effective date to avoid enforcement, while platform verification mechanisms are likely to increase the visibility of regulated status on paid promotions as well. [3],[1],[6]
Taken together, the measures represent a sharpening of digital oversight in India’s securities market: mandatory on‑profile identification, post‑level tagging of registration details, advertiser verification and active removals of misleading accounts signal a sustained campaign to make online investment information more transparent and to reduce the reach of unregistered advisers. Observers say the combined approach, pairing disclosure requirements with platform‑level verification and enforcement, should make it harder for fraudulent or misleading market content to proliferate. [7],[4]
Source Reference Map Inspired by headline at: [1]
Sources by paragraph: - Paragraph 1: [2], [3] - Paragraph 2: [1], [2] - Paragraph 3: [3], [2] - Paragraph 4: [1], [7] - Paragraph 5: [4], [5], [6] - Paragraph 6: [3], [1], [6] - Paragraph 7: [7], [4]
Source: Noah Wire Services