The Securities and Exchange Board of India (SEBI) has issued a circular mandating the clear disclosure of registered names and registration numbers by all SEBI-regulated entities and their agents on Social Media Platforms (SMPs). Effective May 1, 2026, this directive aims to protect investors by enabling them to distinguish authentic financial advice and market content from that posted by unregistered persons.
The policy covers a wide range of intermediaries, including Stock Brokers, Investment Advisers, Research Analysts, and Mutual Funds, requiring them to display their credentials prominently at the beginning of any social media post or video. By enforcing these "Technical Fidelity" standards, SEBI is operationalizing a transparent digital ecosystem that mitigates the risks of financial misinformation and fraudulent schemes on popular platforms.
Key Pillars of the SEBI Social Media Disclosure Framework
Universal Applicability: Extending the mandate to all intermediaries registered under Section 12 of the SEBI Act, including InvITs, REITs, AIFs, and Portfolio Managers.
Placement of Disclosures: Requiring the SEBI registered name and number to be provided at the beginning of the content (top of the post for text; start of the video for audiovisuals).
Home Page Transparency: Mandating a permanent web link on the home page of social media handles that lists all principal entities and their registration numbers.
Agent and Sub-Entity Accountability: Ensuring that agents (such as Mutual Fund distributors) disclose both their own and their principal entity's credentials in a standardized format.
Ease of Doing Investment (EoDI): Framing the regulation as a "Ease of Doing Investment" initiative to build long-term retail investor confidence in the digital securities market.
Policy Relevance
For India's capital markets, the 2026 Circular marks a transition from "Reactive Enforcement" to "Proactive Digital Identity Verification," essential for governing the massive surge in retail participation via social media.
Identifying Regulated Content: The primary function of the disclosure is to provide a mechanical way for investors to verify that the person or entity posting market advice is officially regulated by the Board. Requiring registration numbers at the start of content acts as a primary mechanic to ensure that "Finfluencers" who are actually regulated entities are clearly identifiable.
Accountability for Agents: By requiring agents to cite their principal’s registration details at the beginning of content, SEBI ensures that the oversight of the principal entity extends to the agent's social media conduct.
Linkage to Primary Credentials: The mandate for a home page web link ensures that an entity's complete registration status—including multiple capacities—is accessible from the social media interface.
Relevant Question for Policy Stakeholders: What institutional mechanisms are needed to educate the common man on identifying the 2026 disclosure format as a "Verified Expert" signal on social media?
Follow the full circular here: SEBI Circular: Disclosure of Registered Name on SMPs
