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SEBI Proposes 30-Day Lag on Educational Data Access
The Securities and Exchange Board of India (SEBI) has introduced a consultation paper proposing a uniform 30-day time lag for the sharing and use of stock market price data intended for investor education and awareness initiatives. This significant regulatory shift seeks to prevent the circumvention of existing frameworks for Investment Advisers (IA) and Research Analysts (RA).
Background and Rationale
SEBI's approach to sharing price data has evolved. Previously, a one-day lag was permitted for entities solely focused on investor education. However, concerns arose that this near-real-time data was being used under the guise of education to offer investment advice or research analysis. A subsequent order in January 2025 mandated a three-month delay, a period that stakeholders found too lengthy, rendering educational content stale and ineffective.
The market regulator highlighted that "using live data for educational purpose is clearly outside the scope of pure educational activity as it involves analysing current data to predict future prices, which falls under the definition of Investment Advisory (IA)/Research Analyst (RA) activity." The proposed 30-day lag aims to strike a balance, protecting against data misuse while ensuring educational material remains relevant for investors.