India's Regulator SEBI Seeks Social Media Oversight Powers

The Securities and Exchange Board of India (SEBI) is requesting expanded powers from the government to tackle unauthorized financial advice on social media platforms. The request includes accessing call records for investigations, as current laws do not categorize SEBI as an authorized agency for such data access.

In a bid to intensify its crackdown on unauthorized financial advice on digital platforms, India's market regulator SEBI is pushing for enhanced authority. The regulator seeks broader powers from the government to access call records from platforms like WhatsApp and Telegram, according to a government source and documents reviewed by Reuters.

This is the second attempt by SEBI, following a previous request in 2022, to gain capabilities akin to other law enforcement agencies such as the Tax Department and Enforcement Directorate. The request remains pending, with social media companies, including Meta's WhatsApp, currently denying access due to absence of legal standing.

While developed nations like the U.S. and Europe avoid granting direct post-removal authority to their securities regulators, SEBI is urging for a broader policy decision that could lead to significant shifts in regulation of market-related social media content. The government is considering the request, weighing it alongside the ongoing necessity of addressing serious crimes like insider trading.