The Securities Exchange Board of India (SEBI) will now send its subpoenas and display cause notifications through instant messaging channels as well as other methods of electronic and physical delivery. The regulator will launch instant messaging apps like WhatsApp and Telegram, both of which are hugely popular in India, to complement their normal communication methods, The Economic Times reported.
The change is based on the tedious sending of physical summons and notifications during times of restricted movement and bans. This has often resulted in the intended recipients being able to evade official communications. In addition to instant messaging, the market surveillance authority also sends its official communications by e-mail, registered mail, courier and fax.
“The law and regulation of the securities market and the regulatory framework continue to be subject to dynamic changes from time to time. In order to simplify the system of jurisdiction and timely issuance, the manner in which notices and orders are served has also changed. To meet the needs of the Time to meet, “Zerick Dastur, founder of Zerick Dastur, attorneys and attorneys told ET.
While the legality of using electronic communications and legal notices via instant messaging apps has been questioned, the Supreme Court basically agreed the legality of such practices. The bank of then Chief Justice SA Bobde and Judges RS Reddy and AS Bopanna, together with the contributions of Attorney General KK Venugopal and Attorney General Tushar Mehta, had agreed to the view that electronic forms of communication such as e-mails, instant messaging apps and other future Developments would be considered valid for the sending of judicial notices and subpoenas.
Since the Indian securities market operates in an almost complete demat environment, the KYC (Know-Your-Customer) information of the customers, including their names and telephone numbers, is securely stored with intermediaries and can therefore be easily accessed by the SEBI at any time Requirement.
(Edited by : Shoma Bhattacharjee)