SEBI will get the right to get call records - group chats; also plans to remove illegal financial advice from social media

Capital market regulator SEBI has demanded the government increase its authority. If this demand is accepted, then all illegal financial advice can be removed from social media like WhatsApp Telegram, etc. Also, there has been a demand to access the call records of the accused concerned to investigate market-related violations.

The Securities Exchange Board of India (SEBI) also put forward a similar demand to the government in 2022. Again it has written a letter on 3 February. The demand is when the regulator has heightened investigations of market violations and banned irregular financial tips that were released on social media. Social media platforms have not yet obeyed the government's demand for their call details records, groups, and channels even after a prior meeting with the regulator. In a letter to the government last week, SEBI conveyed that companies like Meta Platform's WhatsApp have denied sharing their social media group chats with the regulator since the current Information Technology Act does not treat it as a sanctioned body. The regulator claims that if any material violates security rules and that material is present on social media channels, then it should be given the power to delete it in any case.

SEBI said it is necessary to have the power to access the data records of calls or messages circulated through digital or social media platforms. Other law enforcement agencies like the Tax Department, Revenue Intelligence Department, and Enforcement Directorate have these rights, but regulators do not have them. SEBI finds itself limited when investigating serious market violations due to the lack of power to access fraudulent call data records.