Background
With the rapid growth of social media usage in the securities market, instances of misleading and unverified content have also increased. Investors often find it difficult to distinguish between content posted by SEBI-registered entities and that circulated by unregistered persons. This often results into investors losing their hard earned money at the hands of fraudsters. Taking cognisance of this SEBI has issued a circular dt: February 26, 2026 [‘February circular’] in this regard.
In this article we will try to understand the applicability of this circular, pre-dominantly to Infrastructure Investment Trusts (InVITs), Real Estate Investment Trusts (ReITs) and the compliances to be undertaken by them.
Applicability
As per clause 3 of the February circular, it is applicable to all persons regulated by the SEBI as defined under explanation 1 to regulation 16A of SEBI Intermediaries Regulations 20081. As per this definition, this circular is applicable to all market intermediaries, InVITs, ReITs as well as to the trustees and investment managers of INVITs and REITs.
Importantly, the requirements also extend to agents of such regulated entities, including mutual fund distributors and other authorised intermediaries.
However, a point worth noting is that this circular is silent about applicability to individuals like directors, KMPs, compliance officers etc. associated with the entities listed above.
Key Requirements
SEBI has mandated that regulated entities and their agents must prominently disclose their SEBI registered name and registration number:
• On the home page of their social media handles; and
• At the beginning of each video or content related to the securities market.
In cases where an entity holds multiple SEBI registrations, a web link listing all registrations must be provided on the home page, and details of that particular registration, in capacity of which the content is being shared, must be disclosed at the beginning of each specific content.
In case of agents, the additional requirement is that, they must disclose their own registration details in the manner specified above, and in addition to that, they should
also disclose the registration details of that regulated entity for whom they are acting as agent.
This disclosure requirement applies to all securities market-related content posted on social media platforms such as YouTube, Instagram, Facebook, WhatsApp, X, LinkedIn, Telegram, Reddit and similar platforms, including content shared in closed groups. One point worth noting here is that, The list of social media platforms provided in the circular is illustrative and the disclosure requirements can also apply to other social media platforms not listed in the circular.
For example,
If an entity is registered as INVIT and it is desirous of posting any securities market related content on any of its social media handle, then the home page of that entity’s social media account as well as the content itself should contain the registered name and registration number of that INVIT. Further, if the investment manager is posting any security market related content on its own social media account in the capacity of agent of INVIT, then it has to disclose its own registration details as well as the details of the INVIT on whose behalf the content is being posted.
Effective Date
The provisions of the circular will come into effect from May 1, 2026, and will apply to all securities market related content uploaded on or after that date.
Conclusion
This circular reinforces SEBI’s focus on transparency and investor protection in the digital space. Regulated entities, including InvITs and REITs, must now align their social media practices with these disclosure norms to ensure clear identification of authentic market participants and to mitigate the risk of misuse of their names on online platforms.