Today rampant technological innovation has brought a change in the way many of us communicate. After having hand-written letters / memos, typed them on typewriters or computers (in a later era) and sent via the physical mode (either by post or courier service), today we often exchange e-mails. With fast moving technology, we’ve moved forward even further as we have messenger systems or applications (commonly known as apps) on our smartphones – be it the “BlackBerry Messenger (BBM), WhatsApp or any other”; which is helping us to communicate conveniently and quickly to one individual or a group. Somehow the usage of technology has helped us converge with many facets of our life - even investing and wealth creation. You see, we often exchange with one another some investment tips vide the messenger applications on our smart phone – be it related stock market investing or investing in fixed income instruments as well. And thanks to the investing apps as well, which keep us updated on daily capital market activity. But going forward you got to adopt caution while exchanging information related to stock market investing.

The capital market regulator – the Securities and Exchange Board of India (SEBI) is mulling ways to keep a check on the exchange of price sensitive information about stocks, which today often gets shared with the usage of all messenger apps (such as the above) used by many individuals on their smartphones.

It is noteworthy that to strengthen its probe and oversight stock market transactions, the capital market regulator has already got tools in place along with Information Technology (IT) experts to analyse discussions on social networking sites like Twitter and Facebook. However according to a SEBI official, applications such as BBM and WhatsApp are proving to be too tricky for the regulator, given the multi-level difficulties faced in tracking the source and spread of market-sensitive information through these mass-messaging platforms. And therefore giving such a complexity, manipulators are often using the aforesaid smartphone apps.

PersonalFN is of the view that sharing of price sensitive information poses a risk in stock market investing in today’s new-age mobile applications. SEBI's investigations into a number of insider trading and market manipulation cases during the recent months may have shown that apps like BBM and WhatsApp were used, and therefore intends to keep vigil. But the very complexity in identifying the source of price sensitive information or message is proving to be a hindrance thus far and going forward if telecom companies do not co-operate in providing further information it could be another impediment in the rightful vigil of the capital market regulator, to tab manipulators who have price sensitive information.

PersonalFN believes that one should refrain from investing on the basis of tips which one may get on such mobile applications, as relying on them may be hazardous to your wealth. Instead it is imperative to be a responsible investor and invest your hard earned money with enough care and prudence, which can facilitate you to achieve you financial goals systematically by undertaking solid research, risk profiling and adequate diversification.

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