SEBI Advises Registered Entities to Follow TRAI’s TCCCP Regulations 2018
Shivani Jain | Updated: Apr 19, 2021 | Category: News, SEBI Advisory
TCCCP Regulations 2018 stands for the Telecom Commercial Communications Customer Preference Regulations 2018.
It was notified by TRAI to curb the issue of Unsolicited Commercial Communication.
Further, these regulations include provisions for PE (Principal Entities) as well. The term Principal Entities means the entities who intend to send bulk messages or SMS.
What is the reason behind the compliance of TRAI’s TCCCP Regulations 2018?
The main reason behind the compliance of TRAI’s TCCCP Regulations 2018 by the Registered Entities is that the apex market regulator, i.e., SEBI, has noticed that unsolicited messages comprising of investment advice or stock tips with respect to the Listed Companies are being circulated at a large scale through bulk SMS to the general public and investors
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SEBI Advises Registered Entities to Follow TRAI’s TCCCP Regulations 2018
SEBI (Securities and Exchange Board of India), through a Press Release No 14/ 2021, released on 23.03.2021, has issued an Advisory stating that it is mandatory for all the Registered Entities to follow TRAI’s TCCCP Regulations. Further, it shall be noted that the term Registered Entities include MII (Market Infrastructure Institutions) as well.
Also, it shall be noted that the term TCCCP Regulations stands for the Telecom Commercial Communications Customer Preference Regulations 2018, and the term TRAI stands for Telecom Regulatory Authority of India.
In this learning blog, we will discuss the notion of TCCCP Regulations 2018, together with the need for this press release and the consequences of the non-compliance.
Concept of TCCCP Regulations 2018
The Acronym TCCCP Regulations stands for the Telecom Commercial Communications Customer Preference Regulations 2018. It was notified by TRAI to curb the issue of Unsolicited Commercial Communication.
Further, these regulations include provisions for PE (Principal Entities) as well. The term Principal Entities means the entities who intend to send bulk messages or SMS. It shall be noted all the principal entities need to register themselves and the message template with the telecom service providers.
Also, it must be noted that the effective implementation of these regulations will protect the interests of both the general public and investors from the often and unsolicited misleading messages.
Need for Registered Entities to Follow TRAI’s TCCCP Regulations 2018
The main reason behind the compliance of TRAI’s TCCCP Regulations 2018[1] by the Registered Entities is that the apex market regulator, i.e., SEBI, has noticed that unsolicited messages comprising of investment advice or stock tips with respect to the Listed Companies are being circulated at a large scale through bulk SMS to the general public and investors. Such messages ask the public to purchase or invest in the stock of various listed companies.
However, it shall be taken into consideration that the circulation ofmisleading and unsolicitedmessages is not only detrimental and harmful to the interest of the investors and general public but also adversely distresses the integrity of the capital and securities market.
Consequences of Non Compliance with TRAI’s TCCCP Regulations
It shall be noted that the Non-compliance with the provisions of the TCCCP Regulations, may result in the disturbance of delivery of the messages of the listed companies to the public and investors.
Conclusion
In a nutshell, SEBI, through a Press Release No 14/ 2021, released on 23.03.2021, has asked all the registered entities to comply with the provisions of the Telecom Commercial Communications Customer Preference Regulations 2018 else they will face disruption in the delivery of their messages.
Also, Read: SEBI Notifies SCRA (Stock Exchanges & Clearing Corporations) Regulations 2021
