Sebi Strengthens Social Media Norms for Regulated Entities

Sebi proposed strict guidelines requiring regulated entities to display their registration details on social media platforms to prevent misleading content. The new rules aim to protect investors from deceptive material and ensure content compliance with existing laws. Sebi also highlighted efforts to collaborate with major tech platforms.

Sebi has unveiled proposals aimed at enhancing transparency and investor protection on social media. The regulations mandate that all regulated entities and their agents display their registered name and registration number prominently on their social media platforms' home pages and alongside content uploads.

The move comes as the regulator flags a pressing need to differentiate content shared by Sebi-regulated entities from that of unregistered individuals. This distinction is crucial to avoid misleading investors with inaccurate or harmful material, as noted in Sebi's consultation paper.

Under the new guidelines, content from regulated entities must not promise guaranteed returns or include illegal and misleading information. Sebi is strengthening collaboration with social media giants to enforce these standards and fight fraudulent content, ensuring only verified, registered entities advertise investment products.

(With inputs from agencies.)