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The NSE informed the court that it had reported the deceptive posts and advertisements to Meta, and while they were eventually removed, the process was ‘extremely time-consuming and impracticable’ | Representational Photo
In an advisory issued on September 3, the Ministry of Electronics and Information Technology (MeitY) urged all intermediaries to promptly and proactively remove fake content, following a Bombay High Court directive. The HC required Meta, the parent company of Facebook, Instagram, and WhatsApp, and Telegram to delete all false information, including altered videos and profiles related to the National Stock Exchange (NSE), within 10 hours of receiving a complaint.
“The Ministry of Electronics and Information Technology wishes to remind intermediaries of their duty to swiftly remove any prohibited material at the earliest opportunity,” the advisory stated, as reported by The Hindustan Times. It continued, “Intermediaries are advised to complete the takedown process, where necessary, as proactively as possible without waiting for the time limits set in the Rules, which serve only as an upper threshold.”
The advisory referred to the Information Technology Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Under the IT Act, IT Rules 2021, and the 2015 Supreme Court ruling in the Shreya Singhal case, intermediaries are required to take down “unlawful information” within 36 hours of receiving “actual knowledge,” either via a court order or a notice from the “Appropriate Government”.
Fake videos prompted MeitY’s advisory
The July 16th order from the Bombay HC followed the circulation of fake videos featuring NSE’s Managing Director and CEO, Ashishkumar Chauhan. These AI-generated deepfakes, appearing on social media platforms such as Facebook, Instagram, WhatsApp, and Telegram, falsely depicted Chauhan encouraging users to join WhatsApp groups for stock tips. Some videos falsely suggested that the NSE would reimburse investors for losses. Justice RI Chagla directed Meta, Telegram, and LINE to act on complaints from the NSE within 10 hours, but not exceeding 14 hours.
“The deceptive actions of the violators have the potential to manipulate the markets, resulting in unfair trading practices and violations of various Sebi regulations,” the NSE said. It warned that these videos could mislead “innocent investors,” potentially causing them financial harm and negatively impacting the securities market ecosystem, with the NSE facing significant financial and reputational damage as the primary market regulator.
Removing deceptive posts time-consuming: NSE
The NSE informed the court that it had reported the deceptive posts and advertisements to Meta, and while they were eventually removed, the process was “extremely time-consuming and impracticable” in the long run. Investors could act on the misleading tips immediately, yet it took Meta and Telegram five to 15 days to take down the fake content after being reported. In some cases, it took more than 17 days, the NSE stated.
“During the period that the fake videos are in circulation, there is a significant risk of grave and irreparable harm, as several investors may act on the false information contained in the fake videos, websites, groups, or channels mentioned in the advertisements,” the NSE noted.
First Published: Sep 06 2024 | 11:30 AM IST
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