SEBI probing into sharing of listed companies info on social media

SEBI probing into sharing of listed companies info on social media

SEBI probing into sharing of listed companies info on social media

PTI | Nov 16, 2017, 19:18 IST
Sebi has already taken action against several entities for providing investment advice without registration.
NEW DELHI: Markets regulator Sebi will look into the complaints of some individuals allegedly circulating key financial details and other information about listed companies on social media groups before they are made public, an official said.

Sebi will also seek clarification from brokerages and listed firms if such individuals are found to be associated with them, the official said on the condition of anonymity.

The information about the listed companies are mostly being made through SMSes, WhatsApp and various social media platforms, wherein names of some established brokerage houses and exchanges are also being misused.

While the Securities and Exchange Board of India (Sebi) has already taken action in several such cases so far, it is investigating a number of others involving similar activities, the official said.

Citing an investigation, Reuters reported today that messages are being circulated on private WhatsApp group disclosing the financial information of the listed companies before making it public.

Sebi has already taken action against several entities for providing investment advice without registration. These included MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, Orange Rich Financials, GoCapital, CapitalVia Global Research and one Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala.

Besides tightening its noose on the scamsters, Sebi has enhanced its investor awareness campaign on these issues.

In several latest public notices, the markets regulator cautioned the investors against trading on the basis of unsolicited tips received through SMSes, social media, websites and other public media platforms.

It also asked the public to deal with only Sebi- registered investment advisers and research analysts and warned the unregistered entities of strict action.

In August, the regulator had got the help from telecom regulator Trai to curb fraudulent bulk SMSes that entrap gullible investors with stock tips promising huge financial gains.

Last year, Sebi had floated a consultation paper to ban unauthorised trading tips through SMSes, WhatsApp, Twitter, Facebook and other social media platforms, as also games, competitions and leagues relating to securities market.

It also proposed to curb unsolicited investment advice and promotion of investment products through electronic and broadcasting media platforms and has sought greater checks and balances for online investment advisory services and use of automation or robotic tools.

However, the regulator has yet to put in place a final regulation in this regard.

source : https://timesofindia.indiatimes.com...info-on-social-media/articleshow/61675985.cms