The Securities and Exchange Board of India (SEBI) has issued a revised master circular directing registered portfolio managers to monitor social media platforms such as Telegram, WhatsApp, and Instagram for fraudulent activity.
The directive, issued on 16 July 2025, replaces the earlier circular dated 7 June 2024. It comes in response to reports of individuals misusing Sebi’s name and that of registered portfolio managers to mislead investors.
“It has been brought to [SEBI’s] notice that there are some persons who impersonate as SEBI registered portfolio managers on Telegram, WhatsApp groups or Instagram groups, thereby misleading the investors to defraud them,” the circular states.
Portfolio managers are now required to regularly monitor social media platforms for impersonation and unauthorised use of their names. Sebi expects prompt action if any suspicious activity is detected.
“Based on this continuous monitoring of such entities, concerned Portfolio Manager should promptly take appropriate actions including issuing a press release / public notice, filing FIR etc. to ensure that such entities / groups are prevented from misusing names of such Portfolio Manager,” the circular reads.
The circular also includes updates related to operational responsibilities. Portfolio managers must maintain complete segregation of each client’s funds and securities. While they may use a common bank account for client funds, specific requirements have been laid out:
- Each client’s funds must be clearly identifiable in back-office records.
- Funds of one client must not be used for another.
- An accounting system must capture and maintain client-wise data.
- Monthly statements reflecting client balances must be shared.
- Daily reconciliation of client-wise balances against the bank account is mandatory.
Earlier this year, it was reported that Sebi may work with digital platforms to identify financial influencers operating without proper registration. The latest directives are part of a broader framework focused on investor protection and compliance within the digital space.
