On November 28, 2025, the Securities and Exchange Board of India (“SEBI”) has released a consultation paper proposing a new framework requiring SEBI-regulated entities and their agents to disclose their registered name and registration number on all content posted on Social Media Platforms (“SMPs”).[1]
Background
SEBI has observed a sharp increase in securities-market frauds occurring via social media. These include (a) misleading or manipulative content; (b) unregistered persons posing as regulated professionals; and (c) fraudulent investment-related promotions.
Given the difficulty for investors to distinguish between legitimate and unregulated content, SEBI is seeking to enhance transparency, investor protection, and monitoring capability.
Key Concerns Identified by SEBI
- Proliferation of Fraudulent Social Media Content: Fraudsters and unregistered individuals have been using SMPs to perpetrate various forms of securities-market fraud.
- Need to Distinguish Regulated Content: Social media posts by SEBI-regulated entities should be clearly distinguishable from those created by unregistered persons.
- Strengthening the Conduct Obligations of Regulated Entities: SEBI-registered intermediaries are subject to codes of conduct under respective regulations. SEBI emphasises that any content published by such entities on SMPs must:
- comply with the law; and
- avoid harming investor interests.
- Investor Identification of Regulated Sources: SEBI proposes mandatory disclosure of registered name and registration number so that investors can easily verify whether a post originates from a regulated entity.
SEBI has invited comments from stakeholders and the public, latest by December 19, 2025.
[1]https://www.sebi.gov.in/reports-and-statistics/reports/nov-2025/consultation-paper-on-draft-circular-disclosure-of-registered-name-and-registration-number-by-sebi-regulated-entities-and-their-agents-on-social-media-platforms-_98027.html