SEBI's plan to protect investors from fraudulent stock tips could actually end up hurting them...!

The regulator's proposal to ban market discussions on social media and whatsapp is overly restrictive and on attack on free speech. The Securities and Exchange Board of India has Outlined a proposal that at first glance services to protect Indians from fraudulent investment advice. In the age of pyramid schemes, attempting to address that problems is a good idea.

But the way SEBI proposes to go about this in the consultation paper is heavy handed cracking down not an fraudulent advisory services but instead on fraudulent advisory services but instead on discussions of stocks and stocks tips on social media, email, and on SMS / Whatsapp.

This move would deeply restrict any free-speech and discussion around stock market.Have a conversation with a friend about a rising stock on Facebook? Discussion is critical key to healthy markets people should be able to freely debate among themeselves wheather something is worthwhile to buy or not SEBI. , in attempting in regulate this is restrict an individual from recommending a bank service or app or any other product they use as a customer one option here is a narrower regulation

 advice and commentary by registered advisory firm in stock that they have holdings in that may be more effective than the current broad holdings in that proposla that cracks down anyone commmenting on. Some markets like the European union have addressed the advisory issue by focusing on disclose holding in this stocks....!