The NSE informed the court that it had informed Meta about the misleading posts and advertisements and while they were eventually removed, the process was “extremely slow and impractical” | Representative photo
In a notice 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 High Court required Meta, the parent company of Facebook, Instagram and WhatsApp, and Telegram to remove 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 promptly remove any prohibited material as soon as possible,” the notice said, according to a report by the Ministry of Electronics and Information Technology. The Hindustan TimesHe went on to say: “Intermediaries are encouraged to complete the removal process, where necessary, as proactively as possible without waiting for the time limits set out in the Rules, which serve only as an upper threshold.”
The notice referred to the Information Technology Act and the Information Technology (Intermediaries Guidelines and Digital Media Ethics Code) Rules, 2021. As per the IT Act, the IT Rules, 2021, and the Supreme Court’s 2015 Shreya Singhal judgment, intermediaries are required to remove “unlawful information” within 36 hours of receiving “actual knowledge” of it, either by way of a court order or a notice from the “appropriate Government.”
Fake videos prompted MeitY warning
The Bombay High Court’s July 16 order followed the circulation of deepfake videos featuring NSE MD and CEO Ashishkumar Chauhan. These AI-generated deepfakes, appearing on social media platforms such as Facebook, Instagram, WhatsApp and Telegram, falsely showed Chauhan encouraging users to join WhatsApp groups for stock tips. Some videos falsely suggested that the NSE would reimburse investors for losses. Judge RI Chagla ordered Meta, Telegram and LINE to act on the NSE’s complaints within 10 hours, but not exceeding 14 hours.
“The misleading actions of the violators have the potential to manipulate 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 financial harm to them and negatively impacting the stock market ecosystem, and the NSE would face significant financial and reputational damage as the apex market regulator.
Removing misleading posts is time-consuming, says NSE
The NSE told the court that it had informed Meta about the misleading posts and advertisements, and while they were eventually removed, the process was “extremely slow and impractical” in the long term. Investors could act immediately on misleading tips, but Meta and Telegram took between five and 15 days to remove the false content after it was reported. In some cases, it took more than 17 days, the NSE said.
“During the period in which the fake videos are in circulation, there is a significant risk of serious and irreparable harm as a number of investors may act on the basis of false information contained in the fake videos, websites, groups or channels mentioned in the advertisements,” the NSE said.
First published: September 6, 2024 | 11:30 am IS
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