Mumbai’s financial watchdog SEBI has fired a warning shot at market intermediaries. In a comprehensive directive, brokers, portfolio managers, mutual funds, and their agents must etch their SEBI registration details into every social media utterance about securities, starting May 1.
Platforms in the crosshairs? All of them – from the video behemoth YouTube and photo-sharing Instagram to messaging apps like WhatsApp and Telegram, plus X, Facebook, LinkedIn, Reddit, and Threads.
The rationale is investor protection pure and simple. Social media brims with dubious tips, and SEBI wants to spotlight the real deals. Recent crackdowns on share-rigging cabals using these channels underscore the urgency.
Compliance demands precision: blast reg name and number on profile homepages. Lead every market video or post with them. Got several registrations? Serve up a web link to the full roster and pinpoint the one governing the content.
Analysts see it as a transparency triumph. ‘No more hiding behind anonymous handles – this forces accountability and helps investors dodge scams,’ said a top portfolio strategist.
As social influence on trading surges, SEBI’s rule could prevent billions in losses from hype-driven trades. It’s a clarion call for regulated entities to wear their credentials proudly, building a more resilient market for all.