Daijiworld Media Network - Mumbai
Mumbai, May 9: The Securities and Exchange Board of India (SEBI) on Friday introduced a uniform 30-day delay rule for the use and sharing of stock market data for educational purposes, aiming to resolve regulatory confusion that had persisted for months.
In its latest circular, the market regulator said the new framework will come into effect from July 1, 2026. The decision follows widespread concerns from market participants and legal scrutiny over inconsistencies in earlier guidelines.
The confusion stemmed from two separate SEBI circulars issued over the past two years. In May 2024, SEBI had directed market infrastructure institutions (MIIs), including stock exchanges, not to share price data for educational use with a delay of less than one day. However, a subsequent circular in 2025 imposed a stricter requirement, mandating a three-month lag for such data to be used in investor education programmes.
The issue came under sharper focus during proceedings before the Securities Appellate Tribunal (SAT) in the case involving trader and educator Avadhut Sathe and his firm Avadhut Sathe Trading Academy (ASTA). SEBI had earlier passed an interim order restraining him and his academy from accessing securities markets and ordered the impounding of Rs 546.16 crore, alleging misuse of educational platforms for unregistered advisory services.
During the hearings, the appellants argued that conflicting timelines in SEBI’s circulars had created ambiguity over what constituted legitimate use of market data for educational purposes.
Following consultations initiated in January this year, SEBI proposed a middle path of a 30-day delay, noting feedback from stakeholders. Market participants had pointed out that a one-day lag was too short and could enable misuse, while a three-month delay made the data less relevant for learning purposes.
In its clarification, SEBI stated that the earlier circulars addressed different aspects of data usage — one focusing on sharing practices by exchanges and the other defining eligibility criteria for educational use based on data age.
The regulator has also exempted the National Institute of Securities Markets (NISM) from the revised 30-day lag requirement.