Informal Guidance No. I/7503/2026, Dated: 20.03.2026
The Securities and Exchange Board of India (SEBI) has issued informal guidance on the status of client communications via WhatsApp in the context of placing securities trading orders.
1. Background of the Query
A company sought clarification on whether client instructions received through WhatsApp chats—directing dealers to buy or sell shares—can be treated as:
- Internet transaction records
- SMS records, or
- Legally verifiable records
2. SEBI’s Clarification
SEBI clarified that, as per its Master Circular dated 17 July 2025:
- Orders placed via WhatsApp communication from a client’s registered mobile number may be treated as legally verifiable records
This means such communications can be considered valid evidence of client instructions, subject to compliance with applicable regulatory requirements.
3. Key Conditions
The recognition is contingent upon:
- The communication originating from the client’s registered mobile number
- Proper record-keeping and audit trail being maintained by intermediaries
4. Implications for Market Intermediaries
Intermediaries such as brokers and dealers may:
- Accept WhatsApp-based client instructions, provided they meet regulatory conditions
- Maintain proper documentation and verification systems
- Ensure compliance with SEBI’s record-keeping and audit requirements
5. Objective of the Clarification
The clarification reflects SEBI’s approach to:
- Recognise digital communication channels in trading operations
- Facilitate ease of doing business while maintaining regulatory safeguards
- Ensure traceability and verifiability of client instructions
Overall, the guidance brings clarity on the admissibility of modern communication tools like WhatsApp within the regulatory framework.
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