Market regulator Securities and Exchange Board of India (Sebi) has cracked the whip on social media platforms and has proposed that any equity analysis on all modern means of communications should be banned if it comes from sources that have not been authorised by Sebi.
The market regulator has found itself in a tough spot as it draws much scrutiny from the social media. The hashtags #SEBIgoback and #SEBIkidadagiri have been trending on twitter, as the community feels that this is an obstruction of their Right to freedom of speech and expression.
#SEBIkidadagiri must stop. They have no right to regulate social media & curb our free speech. SEBI should instead focus on scams like NSEL.— Varsha Singh (@varshasinghmcx) November 1, 2016
#SEBIgobackRestricting the stock and MF advise on social media is archaic and dictatorial.— Pooja (@Pooja__G) November 1, 2016
Social media platforms like Twitter and Facebook have enabled everyone to voice their opinions and share their views on various topics, ranging from socio-political issues to market and investment ideas.
The unregulated and untameable nature of the internet has given the masses a ground to exercise their right to freedom of speech and expression without worrying about censorship.
In an debate on CNBC-TV18, JN Gupta Former ED, Sebi and JR Varma, who is also a former Sebi member elaborated on this topic.
Agreeing with Sebi's proposal, JN Gupta said that from the regulator's perspective not everyone in this world is honest and genuine.
He said that millions of uneducated and unaware people get duped by false recommendation on social media and lose their money.
Giving example of the NSEL scam, Gupta said that well educated people were cheated and they later went on to blame the regulator for it.
He said that unlike television, one cannot trace a culprit on social media. The idea behind Sebi's psoposal is not censorship but rather it makes people giving advice responsible and accountable for their actions.
Representing the 'against' motion, JR Varma said that the regulator should not interfere with discussions on such platforms.
If the argument is that people are not traceable on social media then how does one propose implementing norms to censor such advice, Varma pointed out.
He said that people lose a lot of money even after they listen to authorized brokers, analysts and regulated entities. It is just that these organizations frame their calls and opinions with disclaimers, and it does begs the question as to whether even expressing an opinion also requires a licence?
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