'Overreach': USISPF, Nasscom object to Sebi's specified digital platform plan

Advocacy group US-India Strategic Partnership Forum (USISPF) and IT trade body Nasscom have flagged concerns over a recent proposal by the markets regulator, Securities and Exchange Board (Sebi), to define Specified Digital Platforms (SDPs).

- SHIVANI SHINDE & KHUSHBOO TIWARI

Sebi's October 22 consultation paper outlined criteria for recognising SDPs with which Sebi-registered entities shall be allowed to engage or associate for content, advertising, and related activities.

The proposal followed Sebi's mandate restricting registered securities market entities from associating with unregistered or non-regulated platforms. To qualify as an SDP, platforms must adopt policies to take action against users and content creators responsible for fraud, impersonation, and misleading claims in connection with the securities market. Specified actions include content takedowns, channel removals after three violations, and blacklisting entities on three instances of infractions.