The market regulator SEBI has issued new guidelines concerning the sharing of real-time data. According to these guidelines, stock exchanges, clearing members,
and stock brokers are prohibited from sharing real-time data with third parties unless a proper agreement is in place, and records of such agreements are maintained.
Key Instructions from SEBI
SEBI has emphasized that any data-sharing agreement must clearly specify where and how the data will be used.
The boards of brokers and exchanges are responsible for reviewing the purposes for which data sharing is allowed and ensuring compliance.
SEBI stated, “Market Infrastructure Institutions (MIIs) or Market Intermediaries must enter into a clear agreement with institutions with which they wish to share real-time data. The purpose of data sharing must be explicitly stated to prevent misuse.”
Moreover, SEBI requires that the boards of MIIs review the activities of entities using the shared data at least once every financial year.
Reason Behind SEBI’s Decision
SEBI’s decision comes in response to the growing prevalence of betting, online leagues, and transactions involving real-time data on gaming platforms.
These platforms often charge entry fees and award prize money based on the creation of the best-performing portfolio linked to real stock performance.
Currently, stock exchanges offer real-time data for different market segments as a paid service to stock brokers and clients.
However, SEBI has now mandated that for educational and awareness programs, market data should be shared only after a one-day delay.
