Sebi mulls ban on social media tips

Mumbai: Markets regulator Sebi Friday proposed to ban unauthorized stock tips through SMSs, WhatsApp, Facebook, Twitter, and other social media platforms. It is also mulling a ban on games and competitions based on trading in the market. Sebi also proposed stricter regulations on ‘Robo’ advisers — automated investment advisers gaining popularity globally. The regulator also said investment advisers using automated tools would be responsible for such advice.

social media tips

Sebi also proposed stricter advertisement rules for investment advisers, a ban on free-trial offers by advisers, and said that registered research analysts would have to simultaneously provide research reports to all types of investors.
On Friday, Sebi issued a consultation paper aimed at overhauling the regulations for investment advisers, and it will accept comments until November 4, it said.


The markets regulator also proposed that banks, NBFCs, and corporate bodies offering investment advisory services will be required to set up separate arms for that service. Sebi is proposing a three-year transition period for these entities to move investment advisory services to the new setup.

You might also like