TRAI to bring list of entities that failed to comply with new SMS norms

By VARINDIA - 2021-03-24

TRAI to bring list of entities that failed to comply with new SMS norms

The Telecom Regulatory Authority of India (TRAI) is monitoring the implementation of the new norms for text messages that aim to curb the nuisance of spam SMSs and regulate the messages that are sent by principal entities to customers for promotional or financial transaction-related purposes. According to sources, the regulator is preparing the list of entities who have not yet registered themselves with telecom service providers as the norm mandates, and will soon be publishing a list of these defaulting companies.

 

TRAI has written to regulatory bodies like the Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI) and also to the Finance Secretary to direct entities under their jurisdiction to comply with these norms.

 

After TRAI's letter to SEBI, the market regulator said that it has advised registered entities including Market Infrastructure Institutions (which use bulk SMS for providing their services to the investors) to ensure strict compliance with TRAI's norms. "It has come to the notice of SEBI that unsolicited messages containing stock tips/investment advice with respect to listed companies are increasingly being circulated through bulk SMS, inducing investors and the general public to invest in or purchase the stocks of certain listed companies," SEBI said.

 

TRAI will also crack down on financial entities that fail to comply, the official added, as the focus is to help reduce financial frauds via text messages and ensure that customers only receive messages from official entities.

 

As part of the guidelines of the regulations that were released by TRAI in June 2020, entities must register themselves on the portals created by telecom service providers and their SMS headers so that customers will be able to identify and segregate important messages.


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