Sebi proposes ID disclosure on social media to curb misleading market posts

Inside the announcement  
According to SEBI’s consultation paper and reports in LiveMint, The Hindu BusinessLine, and The New Indian Express, the regulator has outlined draft rules requiring intermediaries, pooled investment vehicles, and their agents to display registration details on profile pages and within every post. The proposal comes in response to increasing securities market frauds on social platforms and seeks clearer accountability online.  

Notable updates  
• Scope: Applies to SEBI-registered entities and agents posting market-related content on social platforms  
• Placement: Registration name and number must appear on profile homepages and within each post  
• Rationale: Designed to distinguish regulated communication from unregistered or fraudulent actors amid rising scams  
• Investor context: High reliance on social content for investment choices amplifies risk of misleading posts  
• Next steps: Public comments invited on the draft; final circular to follow post-consultation  

Major takeaway  
Mandatory ID disclosure is intended to create a clear signal of authenticity for investors, supporting safer digital engagement while curbing manipulative or deceptive market posts. It strengthens transparency without directly regulating unregistered content, but offers a practical filter for users.  

Sources: SEBI consultation paper, LiveMint, The Hindu BusinessLine, The New Indian Express