Description

SEBI revises the time lag for sharing and usage of market price data for educational purposes to 30 days, and grants NISM special access with a one-day lag for simulation lab use.

Summary

SEBI has revised the norms for sharing and usage of market price data for educational purposes. The earlier framework prescribed a one-day lag for sharing (Circular dated May 24, 2024) and a three-month lag for usage (Circular dated January 29, 2025). Based on stakeholder feedback and public consultation, SEBI has now unified both sharing and usage lags to 30 days. An exception is made for the National Institute of Securities Markets (NISM), which may access price data with a one-day lag exclusively for use in its simulation lab.

Key Points

  • The time lag for sharing market price data for educational and awareness activities is revised to 30 days (from 1 day).
  • The time lag for usage of price data for sole educational purposes is revised to 30 days (from 3 months).
  • NISM is granted a special exception: it may receive price data with a one-day lag for use in its simulation lab only.
  • MIIs and market intermediaries must enter into legal agreements with entities receiving data for educational purposes.
  • Legal agreements must include provisions to prevent misuse and maintain an audit trail for data usage.
  • Modifies Paragraphs 2(iii) & 2(iv) of SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/56 dated May 24, 2024.
  • Also modifies Question No. 8 of the FAQ in Annexure-A of the January 29, 2025 circular.

Regulatory Changes

  • Previous framework: 1-day lag for sharing (May 2024 circular); 3-month lag for usage by purely educational entities (January 2025 circular).
  • Revised framework: A single unified 30-day lag applies to both sharing and usage of price data for educational purposes.
  • NISM exception: NISM retains access with a 1-day lag, limited to simulation lab purposes.
  • Paragraphs 2(iii) and 2(iv) of the May 24, 2024 circular are formally amended.
  • Relevant FAQ provisions of the January 29, 2025 circular are also amended.

Compliance Requirements

  • Market Infrastructure Institutions (MIIs): Stock Exchanges, Clearing Corporations, and Depositories must update data-sharing arrangements to reflect the 30-day lag for educational purposes.
  • Registered Market Intermediaries: Must comply with the 30-day lag when sharing price data for educational activities.
  • Legal Agreements: All entities sharing price data for educational purposes must execute appropriate legal agreements that include anti-misuse provisions and audit trail requirements.
  • NISM Data Sharing: MIIs/intermediaries sharing data with NISM for simulation lab use must ensure usage is restricted to that purpose and formalised via legal agreement.
  • BSE (IAASB/RAASB): Addressed as a supervisory body; must ensure Investment Advisers and Research Analysts under its purview comply with the revised norms.

Important Dates

  • Circular Date: May 08, 2026
  • Reference Circular 1: SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/56 dated May 24, 2024 (amended)
  • Reference Circular 2: SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2025/11 dated January 29, 2025 (amended)
  • Effective date of the revised norms is not separately specified; the circular is effective as issued on May 08, 2026.

Impact Assessment

  • Educational Institutions & Fintech Platforms: The reduction of the usage lag from 3 months to 30 days is a significant relaxation, making price data more current and useful for genuine educational applications.
  • MIIs and Intermediaries: The increase in the sharing lag from 1 day to 30 days reduces the risk of misuse of near-real-time data under the guise of education, but requires updating existing data-sharing agreements.
  • NISM: Gains a clear regulatory basis for one-day lag access, supporting its simulation-based training programmes.
  • Investor Education: More timely data (30-day vs. 3-month lag) enhances the quality of investor education content without compromising market integrity.
  • Compliance Overhead: Entities must review and potentially renegotiate legal agreements with educational data recipients to incorporate audit trail and anti-misuse clauses.

Impact Justification

This circular standardises the time lag for price data sharing and usage for educational purposes to 30 days, balancing misuse prevention and practical utility. It affects MIIs and registered intermediaries operationally but does not directly impact listed securities or broader market trading.