Despite taking help of IT experts, no tangible solution has been developed to prevent manipulators from spreading critical information about their target stocks through messaging apps such as BBM and WhatsApp.
Market watchdog SEBI is mulling measures to prevent manipulators from spreading critical information about their target stocks through free and encrypted smartphone messaging services such as BlackBerry Messenger and WhatsApp.
SurveyAccording to reports, SEBI is finding it difficult to track the source and spread of market-sensitive information through these platforms. A senior official acknowledged it was difficult for a third party to decode these messages, which happen in a highly encoded manner.
The official further revealed the market manipulators were now extensively using social media platforms such as Facebook and Twitter to spread a word for influencing some stock . However, it’s easy to track information on blogs and social media as most of them are public. But, free messaging apps such as BBM and WhatsApp have emerged the new tool to spread sensitive information.
According to the official, SEBI’s recent investigations into market manipulation cases show apps such as BBM and WhatsApp were extensively used. Despite hiring specialist IT officers to track the discussions taking place on these platforms, no tangible solution has been developed so far.
Experts believe social media platforms have evolved as an effective place to spread the word fact, but then are also being used by scrupulous elements, including those targeting the stock market. Experts fear scrupulous could use social media and other online platforms to conduct their market manipulation activities.
The report that SEBI is mulling measures to track BBM and WhatsApp comes months after the leading Telecom Service Providers (TSPs) in the country agreed to provide the government lawful real-time interception of the BlackBerry services.
Source: The Hindu