 "SEBI")
The Securities and Exchange Board of India (Sebi) on Friday restricted the sharing of real-time market data around stock prices to third-party entities in a bid to clamp down on fantasy games and virtual trading platforms.
The market regulator has directed stock exchanges, clearing members, depositories, and stockbrokers to not share real-time price data for third parties.
It has also directed market intermediaries to formalise agreements around data sharing and specify the reasons for seeking real-time data.
“MIIs or market intermediaries shall enter into an appropriate agreement with entities with whom they intend to share real-time price data. The said agreement shall provide for activities for which the real-time price data would be used by the entity including the justification that it is required for the orderly functioning of the securities market,” said Sebi.
At least once in a financial year the list of activities and entities using this data will have to be reviewed by the board of MIIs.
The move comes at a time when there has been a rising trend of betting, leagues, and transactions on these online gaming platforms using real-time data on price movements. These games could have an entry amount and winning prizes. Users compete on who makes the best-performing portfolio linked to the real stock performance.
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“Some platforms are even offering monetary incentives based on the performance of the virtual stock portfolio,” Sebi said.
Stock exchanges offer real-time data as a paid service to stockbrokers and subscribers for various market segments.
For usage of the market data for educational programmes, the regulator has directed sharing the same with a day’s lag.
“Market price data may be shared for investor education and awareness activities without offering any kind of monetary incentive to the participants, with a lag of one day,” said Sebi.
The new norms become applicable after a month.
