The Securities and Exchange Board of India (SEBI) has proposed making it mandatory for all regulated entities to disclose their registered names and registration numbers when uploading content on social media platforms.
In a consultation paper released on November 28, the markets regulator said that social media platforms have become a hotbed for securities-market frauds, with scam operators luring victims through “misleading” and “manipulative” content.
To curb rising frauds, SEBI said there is a need to clearly distinguish between content uploaded by regulated entities, such as stockbrokers, investment advisors, and mutual funds, and that posted by unregulated entities.
For this, the regulator has proposed mandatory disclosure of the registered name and registration number on the home page of every regulated entity’s social media handle and in each social media post.
Restrictions on social media content
Under the proposed regulation, all regulated entities and their agents are prohibited from:
- Publishing content that contains statements that are false, misleading, biased, or deceptive.
- Making statements that, directly or indirectly, mislead investors or exploit their lack of experience or knowledge.
- Promising or guaranteeing assured or risk-free returns.
- Using SEBI’s logo or referencing any SEBI office or officer.
“In this regard, it is clarified that if anything contained in the social media content is either expressly or in an implied manner, in the nature of promotion of the regulated entity or products or services offered by the regulated entity, such contents shall be considered as an advertisement and shall be required to be in compliance with the provisions of Advertisement Code, if any, applicable for such entity,” said SEBI.
While SEBI has sought public comments on the consultation paper, it has not specified a deadline for submitting feedback.
More than 50% of investors turn to finfluencers for advice
The proposals come at a time when a growing number of investors are relying on financial influencers, or “finfluencers,” for investment advice.
Speaking at an event on November 29, SEBI chairman Tuhin Kanta Pandey cited findings from the regulator’s Investor Survey 2025, which show that 62% of investors in India rely on recommendations from friends, family, or social media intermediaries.
The survey also found that 56% of investors source information about securities-market products from finfluencers on platforms like YouTube, Instagram, Twitter, Facebook, and LinkedIn.
Additionally, 93% of investors considered finfluencers moderately to highly credible, and 62% said they made at least some investment decisions based on finfluencer recommendations, indicating a widening trust gap in the traditional advisory ecosystem.
SEBI’s crackdown on rising digital financial fraud
The proposed regulation is part of SEBI’s broader push to curb misleading…
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