India's Consumer Affairs Ministry has intensified its crackdown on 'dark patterns'—deceptive design tactics used by e-commerce and digital platforms to manipulate consumer decisions. On May 28, Union Minister Pralhad Joshi convened a high-level meeting in Delhi with representatives from over 50 e-commerce firms, major tech companies, and industry bodies such as NASSCOM and FICCI. The government has identified 13 specific dark patterns, including false urgency, misleading advertisements, drip pricing, bait and switch, and subscription traps, and has directed platforms to comply with guidelines under the Consumer Protection Act, 2019. The Advertising Standards Council of India (ASCI) reported that 52 of the 53 most-downloaded apps in India used at least one form of dark pattern, with drip pricing present in 48% of platforms. To support enforcement and consumer awareness, the ministry has launched three digital tools: the Jagriti App, the Jago Grahak Jago App, and the Jagriti Dashboard. The Jagriti App allows users to report deceptive practices. The government has proposed the formation of a joint monitoring group and mandated self-audits by e-commerce platforms, with 11 notices issued so far to non-compliant firms. Penalties for violations can reach up to Rs 20 lakh. Airlines and travel sites have been specifically warned against practices such as pushing high fares and creating fake urgency. Separately, the Securities and Exchange Board of India (SEBI) has imposed an interim ban on former IndusInd Bank CEO Sumant Kathpalia, ex-deputy CEO Arun Khurana, and three other senior executives, restraining them from trading in securities over alleged insider trading. SEBI's investigation found that these individuals sold shares while in possession of unpublished price-sensitive information regarding a Rs 1,572 crore derivatives loss, which was not disclosed to the stock exchange until March 10, 2025. IndusInd Bank's share price dropped 27% following the disclosure. Kathpalia sold 1.25 lakh shares and Khurana sold 3.48 lakh shares during the period in question. The regulator has frozen their accounts to the extent of Rs 19.78 crore, the estimated loss avoided, and directed them to submit detailed financial disclosures. The probe remains ongoing. In a separate development, the Lokpal has dismissed all graft allegations against former SEBI chief Madhabi Puri Buch, which were primarily based on a Hindenburg Research report involving the Adani Group. The Lokpal's order stated that the complaints lacked verifiable evidence and relied on presumptions and assumptions, calling the charges baseless and unsubstantiated. Buch, who served as SEBI chief from March 2022 to February 2025, had denied the allegations. The order concluded that the complaints did not warrant further investigation.
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India markets regulator on Thursday issued a set of measures to strengthen risk monitoring of equity derivatives, including the monitoring of market wide position on single stock derivatives. https://t.co/9eHdZZ23a4