Active Stocks
Fri Jun 14 2024 15:58:47
  1. HDFC Bank share price
  2. 1,597.45 1.05%
  1. State Bank Of India share price
  2. 840.20 -0.44%
  1. Tata Steel share price
  2. 183.05 0.30%
  1. ICICI Bank share price
  2. 1,105.10 -0.20%
  1. Kotak Mahindra Bank share price
  2. 1,717.00 -0.54%
Business News/ Markets / Stock Markets/  SEBI introduces new regulations for sharing of real-time price data with third parties
BackBack

SEBI introduces new regulations for sharing of real-time price data with third parties

SEBI introduced new rules to regulate the dissemination of real-time share price information to third parties, including online platforms, to prevent misuse and ensure regulatory compliance.

SEBI outlined measures to prevent misuse of real-time share price information by online platforms, requiring written agreements for data sharing and annual reviews of entities and activities. (PTI)Premium
SEBI outlined measures to prevent misuse of real-time share price information by online platforms, requiring written agreements for data sharing and annual reviews of entities and activities. (PTI)

On Friday, May 24, the Securities and Exchange Board of India (SEBI) unveiled new rules governing the dissemination of real-time share price information to third parties, including different online platforms.

To control the dissemination of real-time share price information to other parties, including different online platforms, the SEBI unveiled new rules on Friday.

"It has been observed that certain online gaming platforms, apps, websites, etc. (hereafter referred to as "platforms") are providing virtual trading services or fantasy games which are based on the movement of real-time share prices (price data) of listed companies. Some platforms are even offering monetary incentives based on the performance of the virtual stock portfolio" said SEBI.

Also Read: Sebi’s new circular for stock brokers: What does it say about email and SMS alerts to investors?

The Market Infrastructure Institutions (MIIs), which include stock exchanges, clearing companies, depositories, and regulated market intermediaries, have received a number of directives from SEBI in order to address these concerns.

According to SEBI, MIIs and market intermediaries are required to make sure that real-time pricing data is not disclosed to any outside parties unless it is required for regulatory compliance or the securities market to operate properly.

It further stated that in order to ensure the proper operation of the securities market, organisations planning to share real-time pricing data must sign written agreements that specify the purposes for which the data would be utilised. The board of the MIIs or intermediaries is required to examine the list of entities and activities once a year.

Also Read: SEBI issues ‘unaffected price’ concept, other guidelines to help mitigate impact of market rumors on stock prices

According to SEBI, the new norms would take effect thirty days after the circular is released.

SEBI states that there is no need for financial incentives when sharing market price data for the purpose of educating and raising investor awareness, however the data must be delayed by one day.

In addition, SEBI instructed the MIIs and intermediaries to incorporate clauses to avoid misuse in agreements and to exercise due diligence when exchanging data. Additionally, they must take all necessary precautions to stop businesses from abusing price data.

Also Read: Sebi may allow mutual funds to invest in overseas funds with exposure to Indian markets. Details here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 25 May 2024, 10:58 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started