With an aim to curb misuse of real-time, securities-price data by various entities including online gaming apps and virtual-trading services, the market regulator has issued norms for the sharing of this price data.
In a circular issued on May 24, the Securities and Exchange Board of India (Sebi) has said that stock exchanges, clearing corporations and depositories (or market infrastructure institutions or MIIs) and registered intermediaries (such as stock brokers) must ensure that no real time price data is shared with any third party except where sharing of such information is required for orderly functioning of the securities market or for fulfilling regulatory requirements.
The provisions will come into effect on the 30th day from the issuance of the circular (June 22 from counting to the 30th day).
When MIIs or market intermediaries are sharing such data with third-parties, they need to have in place an agreement which will give details of the activities, for which this data will be used by the third party and also the reasoning why the data should be used by the third party for the orderly functioning of the securities market.
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