SEBI Releases Norms For Sharing Real-Time Stock Price Data With Third Parties, Targets Fantasy Games And Virtual Trading Platforms

SEBI has issued regulations effective from June 22, 2024, to regulate the sharing of real-time stock price data with third-party entities. The move comes in response to concerns over misuse of such data, particularly in fantasy games and virtual trading competitions. \r

Key provisions include prohibiting MIIs and market intermediaries from sharing real-time data without formal agreements detailing usage and justifications. Exceptions are permitted for market functioning and regulatory compliance. \r

Additionally, real-time data can be shared for educational purposes with a one-day delay and without monetary incentives. Entities must review data-sharing activities annually, exercise due diligence, and amend bye-laws as necessary. SEBI \r

mandates informing market participants and ensuring compliance on respective websites.