With an aim to curb spam messages on investment advice from the unauthorized person, Telecom Regulatory Authority of India (TRAI) has issued a direction to service providers to ensure that only SEBI-registered brokers are allowed to send investment advice SMSes to their customers.
TRAI said, "SEBI has brought to the notice of the authority that as per their regulations only SEBI registered investment advisors such as brokers, sub brokers, portfolio managers, and merchant bankers are allowed to provide investment advice to investors in stocks and shares."
"Some unscrupulous persons or entities "masquerading" as SEBI-registered investment advisors are sending out investment advice or tips to telecom users through bulk SMSes for financial gains by manipulating the securities market," the regulator further said.
The regulator has asked telcos to ensure that SMSes relating to investment advice/stock tips only from SEBI registered investment advisers, stock brokers, sub brokers, portfolio managers and merchant bankers should be sent or allowed to be sent through registered Telemarketers.
"Messages from SEBI registered investment advisers shall only be sent as transactional message either directly or through a registered Telemarketer. Such messages shall not be sent or allowed to be sent as promotional messages," it added.
Trai has also asked telcos to make necessary arrangements to filter and block the SMSes sent by Telemarketers using bulk SMS channel containing certain key words relating to securities, such as buy, Sell, Hold, Accumulate, Target followed by Scrip code / Scrip name provided by any recognized stock exchange.
Documents relating to the identity of the sender will also have to be kept for a year and needs to be made available to TRAI on request, the regulator directed.