NEW DELHI: Markets regulator Sebi on Tuesday advised all entities, including market infrastructure institutions, that use bulk SMS for providing services to clients to ensure "strict compliance" with the telecom regulator's regulations that are aimed at curbing problem of unsolicited commercial communication.
Non-compliance with the provisions of the regulations may result in disruption of delivery of messages to the investors, Sebi said in a press release referring to the Telecom Regulatory Authority of India's (TRAI) Telecom Commercial Communications Customer Preference Regulations, 2018.
"Effective implementation of these new regulations will help to protect investors and the general public from unsolicited and often misleading messages," Sebi said.
The regulator noted that unsolicited messages containing stock tips or investment advice are increasingly being circulated through bulk SMS, inducing investors and the general public to invest in or purchase the stocks of certain listed companies.
The circulation of misleading messages is not only detrimental to the interest of the investors but also adversely affects the integrity of the securities market, Sebi further added.
The telecom regulator notified the regulation, aimed at curbing problem of unsolicited commercial communication, in July 2018.
Under the new regulations, principal entities -- entities that intend to send bulk SMS -- to register with the telecom service providers and also get the template of the message registered.