SEBI Seeks Expanded Powers to Tackle Unauthorised Financial Advice on Social Media

The Securities and Exchange Board of India (SEBI) is requesting broader powers from the Indian government to regulate unauthorized financial advice on platforms such as WhatsApp and Telegram. This is SEBI's second attempt since 2022 to acquire these powers, which include accessing call records and removing violative content.

India's Securities and Exchange Board (SEBI) is making a renewed request to the government for enhanced powers to control unauthorised financial advice on social media platforms like WhatsApp and Telegram. A government document revealed SEBI's persistent efforts to counteract market violations.

Since 2022, SEBI has been intensifying investigations into market abuses facilitated via social media. Despite government directives, social media companies have resisted granting access to call records and group chats, citing existing information technology laws.

The proposed powers would allow SEBI to remove content violating securities regulations and access communications via digital platforms. Currently, only other law enforcement agencies hold such authority, limiting SEBI's capabilities in probing serious market infractions.