SEBI : Put a Gag on Share Investing, Trading Tips Via FaceBook and Twitter..!


* Full-time Experts to Sift through insider information Soon..!

* American's Securities Exchange Commission issued rules for the use of social media by companies for disseminating non-public material information on April 2, 2013.


Indian Capital market regulator SEBI could issue guidelines to companies on the use of Facebook, Twitter, and other social media to disseminate information to clients & shareholders, following the lead of its American counterpart, the  Securities Exchange Commission (SEC).

Further, the Indian market regulator SEBI will soon hire staff to sift through social media sites and blogs to unearth tips which could impact the stock price and which have not been disclosed through official channels.

On April 2, 2013 the SEC issued rules for the use of social media by companies for disseminating non-public material information.



The provisions for the same regulations (similar to SEC) are contained in Sebis Prohibition of Insider Trading Regulations, under schedule II, which spells a Code of Corporate Disclosure Practice, a SEBI official said.

He explained that the broad rules set by SEC could be adopted by Sebi. The norms on the use of social media may put the onus on companies to keep a check on misuse of these channels, which is good, said Mr. J.N. Gupta, former executive director with SEBI.

But, it should ensure that the official source of shareholder information, such as stock exchanges, are kept in the loop simultaneously.

Experts say a grey area for regulators may be the alleged use of Android Apps &  Blackberry Messenger (BBM) by traders & market operators to spread rumours &  tips.

During the crash in middle and small cap stocks that took place between February and March, 2013 many traders were messaging market sensitive information through BBM &  WhatsApp (an Android-based messenger application), experts told.

SEBI Facebook Address...


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