Exclusive: Government lauds SEBI’s crackdown on social media platforms giving stock market tips; consultation paper on this to releases soon

Government has come out in support of Securities and Exchange Board of India’s (SEBI) crackdown on unregistered advisors making stock-related suggestions on social media platforms. Zee Business’ Tarun Sharma reports.

SEBI initiated action against unregistered advisors after the Zee Business launched its Market Mafia initiative. The market regulator took action against platforms on two instances and which is now being praised by the government.

Many social media platforms including YouTube, Twitter, telegram where advisors who are not registered with SEBI are offering advice on stock markets.

SEBI is going to tighten its hold on such advisors as this often misleads the investors and harm the market. This is not only a loss for the retail investors but also the economy of the country.

The government is supporting SEBI’s action on fake / unregistered advisors on social media, Sharma said.

The government is currently consulting with SEBI on how to increase the strictness on this issue and put an end to unregistered advisors. SEBI is also discussing this with the Finance Ministry, as YouTube channels and social media fall under its purview.

A consultation paper is likely to be released soon, in which stakeholders will share their ideas on how to tighten the laws on stock recommendations on social media.

Zee Business Managing Editor Anil Singhvi advised people to get themselves registered with SEBI before giving any advice on the stock market on any social media platform.

Unregistered Advisor
Unregistered advisors are those who have not registered themselves with SEBI (Securities and Exchange Board of India) and are giving their advice on the stock market to the people. Apart from youtube and telegram if anyone is giving advice in the comment section of social media related to stocks then he / she will also consider as an unregistered stock advisor.

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