SEBI Seeks Greater Authority To Curb Unauthorised Financial Advice On Social Media
New Delhi, 14th February 2025: The Securities and Exchange Board of India (SEBI) has once again urged the government to grant it broader powers to combat unauthorised financial advice circulating on internet platforms like WhatsApp and Telegram. The regulator has also reiterated its demand for access to call records to investigate potential market violations.
This is the second time since 2022 that SEBI has sought these powers, but government approval remains pending. The request comes amid the regulator’s intensified crackdown on financial misconduct and growing concerns over unregulated investment advice being disseminated through social media groups and channels.
SEBI has highlighted that internet media companies have not complied with earlier government requests to share access to group chats and communication records. In a letter sent to the government last week, the regulator stated that platforms like WhatsApp have denied access to these discussions, citing existing information technology laws that do not recognise SEBI as an authorised agency.
To address this issue, SEBI has requested the authority to remove misleading or unlawful messages, links, and groups from internet media platforms if they are found to violate securities regulations. The regulator’s push for stricter oversight reflects its commitment to safeguarding investors and ensuring transparency in the financial markets.
