The Securities and Exchange Board of India (Sebi) has proposed introducing a 30-day time lag for sharing and using market price data for educational purposes, aiming to resolve confusion arising from its earlier regulatory circulars.
In a consultation paper released on Tuesday, Sebi acknowledged ambiguity caused by two previous directives. A May 2024 circular barred market infrastructure institutions (MIIs) and intermediaries, including stock exchanges, from sharing price data with a delay of less than one day for educational use. Subsequently, a 2025 circular mandated a three-month lag for using market data in investor education and awareness activities.
The issue came under renewed scrutiny during proceedings before the Securities Appellate Tribunal (SAT) in the Avadhut Sathe case, where appellants argued that conflicting timelines created a “regulatory vacuum” around permissible data usage. Sebi had alleged misuse of market data for giving stock recommendations under the guise of education.
In its paper, Sebi clarified that the two circulars serve different objectives. The one-day lag applies as a minimum technical requirement for MIIs and intermediaries when sharing data, while the three-month condition relates to ensuring that educational content does not resemble market advice.
However, Sebi noted stakeholder feedback suggesting that a one-day lag is too short and prone to misuse, while a three-month delay reduces the relevance of educational material. The regulator said a 30-day lag could offer a balanced approach by preserving educational value while limiting the risk of near-real-time analysis being used as implicit investment advice.
Other safeguards introduced earlier, including restrictions on activities resembling advisory or research services, will remain unchanged. Sebi has invited public comments on the proposal until January 27.
