capital market regulator SEBI on Friday issued norms for sharing the real-time price of shares of listed companies with third parties including various platforms. The Securities and Exchange Board of India (SEBI) had found that virtual transaction services or fantasy games on some online gaming platforms, apps, websites are based on the fluctuations in real-time share prices of listed companies. SEBI said that some platforms are actually giving monetary incentives based on the performance of virtual share portfolios. Based on this assessment, SEBI has issued norms.
Preparations to prevent misuse of data
SEBI said in a circular that certain rules apply to prevent misuse or unauthorized use of real time prices. According to the market regulator, market infrastructure institutions (MIIs), including stock exchanges and registered market intermediaries, must ensure that real-time price data is not shared with any third party, unless it is necessary for the proper functioning of the securities market or regulatory compliance. MIIs or intermediaries must enter into an agreement with the company with which they share real-time price data. These agreements must specify the activities and reasons for using the data. The list of entities and activities should be reviewed at least once a year.
will be effective after 30 days
Although market price data can be shared without any monetary incentive for investor education and awareness, it should be done with a delay of one day. MIIs and intermediaries should take all possible steps to prevent misuse of price data by entities with whom they share it. SEBI said that these rules will come into effect 30 days after the issuance of this circular.
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