SEBI Implements New Regulations for Real-Time Price Data Sharing: Impact on Bitcoin (BTC) and Ethereum (ETH)

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    <li>On Friday, May 24, the Securities and Exchange Board of India (SEBI) unveiled new rules governing the dissemination of real-time share price information to third parties, including different online platforms.</li>
    <li>The new regulations aim to control the dissemination of real-time share price information to other parties, including various online platforms.</li>
    <li>"It has been observed that certain online gaming platforms, apps, websites, etc. (hereafter referred to as 'platforms') are providing virtual trading services or fantasy games which are based on the movement of real-time share prices (price data) of listed companies. Some platforms are even offering monetary incentives based on the performance of the virtual stock portfolio," said SEBI.</li>
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<p><strong>SEBI introduces new regulations for sharing of real-time price data with third parties. Learn about the implications and key details of these new rules.</strong></p>
<h2><strong>SEBI's New Regulations on Real-Time Share Price Information</strong></h2>
<p>On Friday, May 24, the Securities and Exchange Board of India (SEBI) announced a set of new rules aimed at regulating the dissemination of real-time share price information to third parties, including various online platforms. This move is part of SEBI's ongoing efforts to ensure market integrity and prevent misuse of sensitive financial data.</p>
<h3><strong>Impact on Online Platforms and Virtual Trading Services</strong></h3>
<p>SEBI has observed that certain online gaming platforms, apps, and websites are offering virtual trading services or fantasy games based on the movement of real-time share prices of listed companies. These platforms sometimes provide monetary incentives based on the performance of virtual stock portfolios. To address these concerns, SEBI's new regulations will require Market Infrastructure Institutions (MIIs) and market intermediaries to ensure that real-time pricing data is not disclosed to any outside parties unless it is necessary for regulatory compliance or the proper functioning of the securities market.</p>
<h3><strong>Requirements for Data Sharing Agreements</strong></h3>
<p>According to the new rules, organizations planning to share real-time pricing data must sign written agreements specifying the purposes for which the data will be used. These agreements must include clauses to prevent misuse and ensure due diligence. Additionally, the board of the MIIs or intermediaries must review the list of entities and activities annually to ensure compliance.</p>
<h3><strong>Implementation and Compliance</strong></h3>
<p>The new norms will take effect thirty days after the circular is released. SEBI has stated that there is no need for financial incentives when sharing market price data for the purpose of educating and raising investor awareness, provided the data is delayed by one day. MIIs and intermediaries are also instructed to incorporate clauses to avoid misuse in agreements and take all necessary precautions to prevent businesses from abusing price data.</p>
<h3><strong>Conclusion</strong></h3>
<p>SEBI's new regulations on the dissemination of real-time share price information are a significant step towards ensuring market integrity and preventing misuse of sensitive financial data. By requiring written agreements and annual reviews, SEBI aims to create a more transparent and secure environment for the sharing of real-time pricing data. These measures are expected to enhance investor confidence and contribute to the overall stability of the securities market.</p>