Context:
India’s market regulator, SEBI (Securities and Exchange Board of India), has again sought broader powers from the government to remove unauthorised financial advice from platforms like WhatsApp and Telegram and to access call records for investigating market violations. The request, pending since 2022, comes amid increasing concerns over unregulated financial tips and market manipulation circulating on social media.
Key Highlights:
- SEBI’s Request for Expanded Authority
- SEBI seeks power to take down misleading messages, links, and groups on social media that violate securities regulations.
- Wants access to calls and message data records of digital platforms, similar to agencies like the Tax Department, DRI, and Enforcement Directorate.
- The latest formal request was sent on February 3, 2025.
- Challenges in Enforcement
- WhatsApp (Meta) and Telegram have refused SEBI’s access to group chats, citing IT laws that do not classify SEBI as an “authorised agency.”
- Social media companies have not fully complied with previous government requests for data access.
- Concerns Over Market Violations
- Ongoing investigations into cases of front running, insider trading, and market manipulation require SEBI to monitor social media interactions.
- WhatsApp and Telegram groups have become hotspots for financial influencers offering paid trading tips on specific stocks and securities, raising concerns over unregulated investment advice.
