SEBI Proposes Stricter Recognition Rules for Digital Platforms

SEBI has extended the deadline for public comments on its proposal regarding specified digital platforms until November 26, 2024. The proposal requires platforms to prevent fraud and unauthorised activities, using AI/ML tools. Only authorised content related to securities will be allowed, with specific rules for participation and information sharing.

The Securities and Exchange Board of India (SEBI) announced on Tuesday that it is extending the deadline for public comments on its proposal focusing on specified digital platforms to November 26, 2024. Initially, comments were due by November 12.

According to SEBI's proposal, these digital platforms must take steps to prevent fraud, impersonation, and unauthorised claims, utilising artificial intelligence or machine learning tools. The aim is to ensure that only SEBI-registered entities can post securities-related content, and SEC will monitor this closely.

The consultation paper outlines that these platforms are also required to share necessary data with the regulator upon request, and employ badges to distinguish SEBI-approved entities, adding a layer of transparency for users.

(With inputs from agencies.)