SEBI Allows WhatsApp Orders as Valid Records

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  • Last Updated on 23 March, 2026

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SEBI WhatsApp orders

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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied