The Securities and Exchange Board of India issued new provisions in a circular prohibiting third-party online gaming platforms from using real-time share price data in their fantasy stock trading games.
According to the notice, market intermediaries will have to enter into formal agreements with entities in accordance with SEBI's rules and regulations in order to share real-time price data.
They will also have to provide relevant justification as to how sharing this data ensures the orderly functioning of the securities market, it said.
Intermediaries are also expected to ensure that the entities don't misuse third-party data and to have provisions for the same.
However, they can disseminate share price data with a one-day delay for the purpose of educating and raising investor awareness.
The Securities and Exchange Board of India issued new provisions in a circular prohibiting third-party online gaming platforms from using real-time share price data in their fantasy stock trading games.
The circular issued on May 27 directed market intermediaries such as stock exchanges, depositories, and clearing corporations to ensure that information on real-time share price data is not shared with a third-party entity unless it is to fulfil regulatory requirements or to ensure the orderly functioning of the securities market.
According to the notice, market intermediaries will have to enter into formal agreements with entities in accordance with SEBI's rules and regulations in order to share real-time price data. They will also have to provide relevant justification as to how sharing this data ensures the orderly functioning of the securities market, it said.
The Board of Market Intermediaries has been instructed to review the list of entities with whom real time data is being shared at least once in a financial year.
Intermediaries are also expected to ensure that the entities don't misuse third-party data and to have provisions for the same. However, they can disseminate share price data with a one-day delay for the purpose of educating and raising investor awareness.
