Sebi Extends Deadline Till Nov 26 For Comments On Proposed Specified Digital Platform

New Delhi: Markets regulator Sebi on Tuesday extended the deadline for public comments till November 26 on the proposal concerning requirements for recognition as specified digital platforms (SDPs). Earlier, the comments from the public were sought till November 12. "Based on the representations received by Sebi from some of the entities/organisations, it has been decided to extend the timeline to submit the public comments on the consultation paper till November 26, 2024," the regulator said in a statement.

In its consultation paper, Sebi proposed requirements for recognition as specified digital platforms whereby such platforms should proactively prevent fraud, impersonation, unauthorised claims, and unregistered entities from operating. The regulator suggested that specified digital platforms use artificial intelligence or machine learning (AI/ML) tools to identify content or ads related to securities, ensuring the entity is Sebi-registered or permitted, no unauthorised advice, recommendations, or performance claims are made. The platform should ensure that genuine investor education content is allowed and content does not redirect users to other media such as WhatsApp or Telegram for unauthorised activities, Sebi stated.

Also, the platform should share data with the regulator when requested and act on its inputs. It should provide badges to Sebi-registered entities to help users identify authorised participants. The regulator proposed that only Sebi-registered entities, permitted advertisers, or educational content providers can post securities-related content on the platform. Additionally, such platforms can remove fraudulent or non-compliant content and penalise offenders.