Sebi trying to stop stop market tips on social media, asks power from government

In the last few years, scams associated with the stock market have increased rapidly. To curb this, measures are being taken by Market Regulator SEBI. SEBI has demanded more power from the Central Government to control financial advice from stock market tips and unauthorized sources on social media.

The information received from a government formula and the document viewed by the reuters shows that SEBI has demanded power from the government to remove the unauthorized information related to the stock market from social media platforms like WhatsApp and Telegram. Along with this, the right to access call records has also been sought to investigate the violations of the rules related to the stock market. This is the second time in the last three years when the Securities and Exchange Board of India (SEBI) has demanded the central government to give such power.

SEBI has tried to curb unauthorized financial advice on social media along with intensifying the investigation of violations of the rules related to the market. In a letter sent last week, Markets Regulator has said that companies like META operating WhatsApp have refused to give him access to group chats on social media. The reason for this is not to include SEBI as an ‘authorized agency’ in the Information Technology Act. Such a power tax department, department of revenue intelligence and Enforcement Directorate (ED) have been received.

The letter said, “The scope of SEBI is limited in investigating serious violations related to the market as it has not received power like access to call data records.” In this regard, SEBI, Finance Ministry and META have not answered the email sent for comments. Earlier, access to record related to social media has been demanded by regulators. However, the government has not taken any decision in this regard. WhatsApp had a dispute with the government over access to users’ chat records.