Twitterati fume as Sebi moves to curb investment tips on social media

As the deadline nears for public consultation on Sebi’s proposals to curb unauthorised investment tips through social media, a number of people took to Twitter on Tuesday to criticise the proposed norms announced by the market regulator for protecting investors’ interest.

Microblogging site Twitter was abuzz with comments about the Securities and Exchange Board of India’s (Sebi’s) proposal to ban unauthorised trading tips through SMSes, WhatsApp, Twitter, Facebook and other social media platforms.

A large number of users were tweeting about the proposed norms, but it was not clear how many of them have given their responses to the consultation paper issued by Sebi last month.

The paper is open for public comments till November 4. On October 7, Sebi issued the consultation paper whereby it has proposed curbing unsolicited investment advice and promotion of investment products through electronic and broadcasting media platforms. Besides, the watchdog has sought greater checks and balances for online investment advisory services and use of automation or robotic tools.

Twitter users said Sebi “wants to restrict our freedom of getting stock tips from anyone”. The hashtags‘#SEBIgoback’and‘#SEBIkidadagiri’ were also trending.

Wide-ranging changes have been proposed by Sebi to existing rules to check unauthorised entitiesluringinvestorsthroughtheir tradingtips,includingbulkSMSes, WhatsApp and various internet and mobile-based platforms.