look news india
Mumbai: Capital markets regulator Securities and Exchange Board of India (Sebi) has introduced new rules to regulate sharing of share price data with third parties, including various online platforms. Sebi has specifically issued guidelines to prevent misuse of such data by online gaming platforms, apps and websites that offer virtual trading services or fantasy-like games to the public based on real-time share price fluctuations of listed companies.
It has been found that certain online gaming platforms, applications, websites, etc. (hereinafter referred to as platforms) provide virtual trading services or fantasy games, which are based on real-time stock price fluctuations of listed companies, Sebi said.
To address these issues, SEBI has issued various guidelines to Market Infrastructure Institutions (MIIs), including stock exchanges, clearing corporations and depositories, and registered market intermediaries.
Sebi further said that MIIs and market intermediaries should ensure that real-time price data is not shared with any third party unless required for the proper functioning of the securities market or for regulatory compliance.
As stated, companies wishing to share real-time price data must enter into a formal agreement. This must clearly outline the activities for which the data will be used. It must also ensure that it supports the orderly functioning of the securities market. The list of entities and their activities must be reviewed by the MII or the board of arbitrators every year.
SEBI has said that the new guidelines will come into effect 30 days from the date of issue of this circular. SEBI said that market price data can be shared without any monetary incentive for investor education and awareness, but this data should be delayed by one day.
Sebi has directed MIIs and intermediaries to conduct due diligence while sharing data and include provisions in contracts to prevent misuse. It also said that all possible steps should be taken to prevent misuse of price data by companies.
