wordpress blog stats
Connect with us

Hi, what are you looking for?

SEBI to draft privacy policy to secure investor data: Report

The Securities and Exchange Board of India is in the process of drafting a data privacy policy for investors, the Business Standard reports. The regulator reportedly wants to safeguard “investor data among market intermediaries and third parties”. This is something that SEBI would be required to do, per the law, under the Srikrishna data protection bill, but it seems to be going through the process voluntarily. The Srikrishna committee’s bill — which is currently under a public comment stage — largely leaves the specifics of how data should be safeguarded to sector regulators.

The securities market deals with a high amount of personal data, especially financial personal data. Aside from eKYC through Aadhaar, intermediaries and brokers often have vast access to their clients’ bank transaction logs and credit scores. The Srikrishna bill is one of the few privacy laws in the world — if it passes in its current form — to classify individuals’ financial data as sensitive and personal. This classification led to dissent from within the committee by DSCI CEO Rama Vedashree, which was published as an annexure to the official report itself.

SEBI and privacy

This comes even as SEBI seeks to have greater access to investors’ WhatsApp messages and call records in an attempt to curb insider trading. In March, the Business Standard reported that WhatsApp declined to share personal data of some users suspected in insider trading. The regulator has been investigating leaks of market-sensitive data on WhatsApp since November last year, and has reportedly been following up on four reports.

The regulator has also tried to get greater access to investors’ call logs. In September last year, SEBI issued a circular mandating brokers to record calls and messages where clients placed orders, to make sure that brokers did not engage in unauthorised trades. These calls need to be stored by brokers for three years. In 2014, the Bombay High Court ruled that SEBI is authorised, with safeguards, to seek call logs data of people under investigation.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....


By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...


By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...


By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...


This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like


While these steps by the social media platform could improve the safety of children online, some of the updates will only be rolled out...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ