Introduction
The Securities and Exchange Board of India (SEBI) released a circular titled "Ease of Doing Investment (EoDI) – Disclosure of Registered Name and Registration Number by SEBI Regulated Entities and their Agents on Social Media Platforms" on February 26, 2026, in response to the possibility of unscrupulous investment schemes and deceptive financial advice through digital channels.
The circular imposes mandatory disclosure obligations on SEBI-regulated businesses and their agents when they post anything on social media sites pertaining to the securities market. The goal is to increase investor safety, increase transparency, and make it possible for investors to differentiate between unregistered individuals and regulated businesses online.
Applicability to Various SEBI-Regulated Entities
The circular applies to SEBI intermediaries, agents, distributors, and authorised persons acting on behalf of regulated entities, which include:
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Stock Brokers |
Portfolio Managers |
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Depository Participants |
Alternative Investment Funds (AIFs) |
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Investment Advisers |
Collective Investment Schemes (CIS) |
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Research Analysts |
REITs and InvITs |
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Mutual Funds and Asset Management Companies (AMCs) |
Mutual Fund Distributors |
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Portfolio Management Service Distributors |
Other authorised agents of regulated intermediaries |
Key Compliance Introduced:
1. Mandatory Disclosure on the homepage of Social Media Profiles
SEBI-regulated entities are required to prominently display their:
- Registered name, and
- SEBI registration number
Agents are required to disclose both:
- Registered details of the principal entity, and
- Their own registration credentials, if registration is required under the law.
This requirement ensures that users visiting the profile can easily verify the identity and authenticity of the intermediary.
In cases where an intermediary holds multiple SEBI registrations, the entity must:
- provide a web link on its social media profile, which directs users to its official website, and
- list all SEBI registration numbers and registered names on that webpage.
This helps maintain clarity without overcrowding the social media profile with multiple registration details.
2. Disclosure in Every Securities Market-Related Post
The circular further mandates that the registered name and registration number must appear at the beginning of every video, post, or content related to the securities market shared on social media platforms.
This requirement applies regardless of whether the content is in text, video, or audio format.
Effective Date
The circular will come into effect from 1 May 2026, and the requirements will apply to all content uploaded on or after that date. Existing content posted prior to this date will not be covered by this mandate.
Wide Scope of Social Media Platforms
The circular applies to content shared across various open, closed, and semi-closed social media platforms, including:
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YouTube |
Telegram |
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Threads |
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X (formerly Twitter) \ Reddit |
As a result, anything discussed in private groups or communities that is related to the securities market may also be included.
Conclusion
SEBI seeks to increase transparency, accountability, and confidence in digital financial communications by requiring the disclosure of registered name and registration number on social media sites, consequently lowering the danger of fraud and misinformation.
It is interesting to note how this circular regulated the Finfluencer Ecosystem. Although the circular focuses on regulated entities, it indirectly addresses the issue of unauthorised financial influencers by making regulated entities more identifiable.
This regulatory approach will assist investors in differentiating between reliable, regulated sources and unverified persons as social media becomes a more significant factor in investment decisions. It emphasises how crucial it is for intermediaries to uphold compliance and appropriate communication in the digital sphere.
Disclaimer: This is an effort by Lexcomply.com, to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.