SEBI Seeks Access to Social Media Records for Violation Curb

The Securities and Exchange Board of India (SEBI) has once again approached the government, seeking powers to take down unregulated financial advice from social media platforms like WhatsApp and Telegram. 

It has also requested access to call and message data records from these platforms for market investigations. This is the second such request since 2022, with no approval granted so far.

The Need for Access

SEBI has been cracking down on market violations, including insider trading and front-running, but has cited a lack of access to digital communication as a limitation. Many financial influencers operate through WhatsApp groups and Telegram channels, providing stock tips for money. 

The regulator argues that access to such conversations is necessary for its investigations.

Media Companies and Government 

As per the reports, in a letter sent last week, SEBI stated that Meta’s WhatsApp has denied access to its group chats, citing India’s IT laws, which do not classify SEBI as an ‘authorised agency.’ The regulator has asked for the authority to remove messages, links, and groups that violate securities regulations. It has also sought access to digital communication records, a power currently limited to agencies like the Enforcement Directorate and the Income Tax Department.

Telegram, in an email according to the reports, stated that it processes all valid content moderation requests but does not provide access to call data due to its technical structure. Neither SEBI nor the finance ministry has commented on the matter.

Government’s Consideration 

The government is reviewing SEBI’s request, but there is no decision yet. In 2022, SEBI made a similar request, which was not approved. Instead, the government organized a meeting with Meta to discuss access to relevant data.

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