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Stock manipulation: SEBI looking to monitor BBM and WhatsApp

Submitted by Karthik on 6 May, 2013 - 21:34

The Securities and Exchange Board of India (SEBI) apparently already has a team which monitors blogs and social networks such as Facebook and Twitter for stock fraud where manipulators try to influence people to buy certain stocks thereby driving their price up. But it is finding it difficult to perform the same task with Blackberry and WhatsApp messages.

Sebi's investigations into a number of insider trading and market manipulation cases during the recent months have shown that apps like BBM and WhatsApp were used. However, any tangible solution for knowing the source of messages being spread through these platforms has proven elusive so far.

Last year, Sebi had hired specialist IT officers for keeping an eye on the discussions taking place at these platforms.

Experts say that social media platforms have become a very effective place to spread the information fast, but at the same time, they are also being used by various scrupulous elements, including those in the stock market.

Indian Express has this PTI story.