SEBI Seeks Greater Access To Social Media Call Records: Report

SEBI To Tighten Disclosures For New-Age Tech IPOs

SUMMARY

SEBI is seeking access to call records on these social media platforms to investigate market violations related to the unregulated financial advice, as per a Reuters report

However, the government’s approval is still pending on the same

SEBI in a letter last week said that the companies such as Meta Platform’s WhatsApp have denied it access to their social media group chats

Markets regulator Securities and Exchanges Board of India (SEBI) is reportedly seeking broader powers from the government to remove unauthorised financial advice from social media platforms like WhatsApp and Telegram.

SEBI is seeking access to call records on these social media platforms to investigate market violations related to the unregulated financial advice, as per a Reuters report.

However, the government’s approval is still pending on the same, it added.

This is an attempt by the market regulator to scrutinise market violations related to unregulated financial advice circulating on social media platforms.

SEBI in a letter last week said that the companies such as Meta Platform’s WhatsApp have denied it access to their social media group chats as the current information technology law does not identify the capital markets watchdog as an ‘authorised agency’.

The regulator also sought powers to “take down any messages, information, links and groups on social media channels if the content violated the securities regulations,” the report added.

Earlier, the government also requested the social media companies to access their call data records, and groups and channels but these companies haven’t complied with the government’s request.

This comes after SEBI issued a further set of clarifications on existing guidelines governing finfluencers last month. The market regulator reiterated that brokers, mutual funds, investment advisers, exchanges and other market participants “cannot be associated” with unregistered influencers, neither directly nor indirectly.

SEBI has now also brought mutual fund distributors, authorised persons, portfolio management services distributors and alternative investment fund distributors under the ambit of the new rules.

Not just this, the new norms now also apply to marketing agencies working for the entities regulated by the SEBI.

It is pertinent to note that the regulations governing unregulated influencers already came into force in August last year.

It came after SEBI cracking the whip on finfluencers earlier last year for running pump and dump schemes.