MEITY has clarified that notified agencies of the state and central governments responsible for administration law have the authority to issue directions for unlawful/prohibited content
“In pursuance of clause (b) of sub-section (3) of section 79 of the Information Technology Act, 2000 (21 of 2000) read with clause (d) of sub-rule (1) of rule 3 of the Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021, the Central Government hereby authorises the Securities and Exchange Board of India, as the authorised agency for the purposes of the said rules in respect of sub-section(1) of section 11 of the Securities and Exchange Board of India Act,1992,” a ministry notification dated December 8, said.
While the provisions of IT Act and Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 prescribes a system for removal of unlawful information from the digital space, section 11 of SEBI Act talks about function of the board which includes duty “to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit.”
Considering mushrooming of finfluencers and spread of unverified information about stock market, an additional power was required and now this has been prescribed.
According to Kalindhi Bhatia, Partner at BTG Advaya, under the IT Act, 2000, intermediaries are granted immunity from liability for third-party content hosted by them, so long as they adhere to the due diligences prescribed under the Intermediary Guidelines. “One such due diligence obligation is to take down unlawful or prohibited content within 36 hours upon being directed by an ‘authorised agency’ or pursuant to a court order.
Presently, the MEITY has clarified that notified agencies of the state and central governments responsible for administration law have the authority to issue directions for unlawful/prohibited content. In this backdrop, “pursuant to the notification dated December 8, 2025, SEBI has now been designated as an authorised agency in relation to content concerning the interests of investors in securities,” she said.
Parvesh Kheterpal, General Counsel, Ampyr Energy, said as financial communication increasingly moves to informal and influencer-driven channels, SEBI now has the legal tools to ensure that digital reach does not bypass regulatory responsibility. “With SEBI now recognised as an ‘authorised agency’, intermediary platforms and digital publishers are legally obligated to remove unlawful or misleading financial content upon direction,” he said.
Raj Ramachandran, Partner – JSA Advocates & Solicitors, said with SEBI designated as an authorised agency, SEBI can issue directions to intermediaries to remove or disable access in relation to content that violates laws governing the securities market including where the content relates to misleading financial advice, unregulated investment information, fraudulent trading schemes, or misinformation capable of affecting the securities market.
“While SEBI regulates matters under Investment Advisers Regulations (IA Regulations), Research Analysts Regulations (RA Regulations) and Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations (PFUTP Regulations), it will now also be entitled to issue directions pursuant to the IT Rules, 2021” he said.
Published on December 9, 2025
