Sebi proposes 30-day lag for using price data for educational purposes

The Securities and Exchange Board of India (Sebi) has proposed a uniform 30-day time lag for sharing and using price data of listed companies for educational and investor awareness activities, seeking to strike a balance between preventing misuse of market data and keeping educational content relevant.

 

The market regulator has, at several intervals, issued frameworks on the usage of price data in a bid to prevent the proliferation of online gaming platforms, apps and websites.

 

In a consultation paper issued on Tuesday, Sebi said the proposal aims to bring clarity and consistency to its existing framework governing the use of exchange price data by entities engaged solely in education. The regulator has invited public comments on the proposal until January 27, 2026.

 

 

At present, two separate circulars govern the use of price data for educational purposes. A May 2024 circular permits stock exchanges to share price data for education and awareness activities with a minimum one-day lag, while a January 2025 circular stipulates that entities engaged purely in education can use price data only if it is at least three months old. Sebi acknowledged that while the two circulars serve different purposes, their simultaneous operation has led to confusion among stakeholders.

 

The regulator noted that using live or near-real-time price data for education could blur the line between investor education and investment advisory or research activities, as analysing current prices to predict future movements falls within regulated advisory functions.

 

Sebi said it had received feedback that a one-day lag was too short and could enable misuse of exchange data, while a three-month lag made educational content less effective. Internally, the regulator deliberated that a middle ground would better serve both objectives.