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Sebi working on new norms to curb misuse of social media

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Mumbai | Published: February 27, 2017 10:26:29 PM

Regulator Sebi is working on a new set of regulations to check misuse of social and digital media platforms for "misguiding investors" with false promises of high returns, outgoing chief U K Sinha said today.

He also took on the activists raising the bogey of ?curtailment of freedom of speech? for opposing such restrictions.

Regulator Sebi is working on a new set of regulations to check misuse of social and digital media platforms for “misguiding investors” with false promises of high returns, outgoing chief U K Sinha said today. He also took on the activists raising the bogey of “curtailment of freedom of speech” for opposing such restrictions.

Earlier, attempts of the capital markets watchdog for putting checks on social media being used to lure gullible investors have been criticised in some quarters. Some self-proclaimed analysts have opposed any restrictions on them from airing their ‘views’ on stock markets.

Sebi wanted all such analysts to get registered and follow the regulatory guidelines before going public on mass media and social media platforms with their ‘investment tips’.

Speaking to reporters here at his last press conference as Sebi Chairman, Sinha said social media is a very powerful tool and messages can be replicated multiple times. “Sebi’s attempt has been not to allow misuse of social media. That is our limited task,” he said, adding that if bulk SMSes are being sent guaranteeing assured returns, then the regulator is not comfortable with it.

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Emphasising that the regulator is acting upon such activities, Sinha said it would be bringing a new set of regulations for social media.

“Unfortunately, a bogey of curtailment of freedom of speech was raised but it’s for you to decide if checks against misguiding investors and falsely assuring them of high returns is curtailment of freedom of speech… After these comments have been received, we are re-looking into the matter,” he added.

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