Run educational workshops using Dalal Street data? SEBI's latest proposals may impact you—Here's how

Capital market regulator SEBI has proposed to treat stock market analysis for educational purposes using real time data as investment advice. Flagging the misuse of live stock market data for educational workshops, the regulator has launched a consultation paper proposing a host of changes, including allowing only registered advisors to provide investment advisory services.

Currently, market intermediaries are permitted to use one-day-old data while educational institutions are allowed to use three-months-old data. The latest proposals seek to tighten those timelines for entities dealing in education.

SEBI has invited public comments on its proposals in this regard until January 27.

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First things first, here's a quick summary of the latest proposals:

Key points in SEBI's consultation paper on use of market data in educational courses

• A 30-day delay proposed for release and utilisation of listed company price data for educational and investor awareness programmes
• The main objective is to prevent misuse of market data keep educational content useful and relevant
• SEBI proposals seek to clarify confusion created by its existing rules
• Persons engaged solely in education will continue to abide by January 2025 guidelines: SEBI
• All other provisions remain unchanged
• Currently, two separate SEBI circulars govern price data use in educational programmes
• The concurrent existence of two circulars may have caused confusion: SEBI

Here's a comprehensive overview of this big story:

How does SEBI plan to deal with educational programmes using live market data?

SEBI has proposed a uniform 30-day lag on price data before it can be used for educational or training purposes. This delay is proposed to be applied to data sharing as well as data usage.

The consultation paper comes at a time when a number of restrictions are already in place determining the live prices in educational content.

Why is SEBI making these changes? Are there any exceptions?

The market regulator aims to keep educational content relevant.

The advisory rules, according to SEBI, will not apply to people or entities engaged purely in educational services.

Will earlier restrictions remain in place?

A number of prohibited activities, listed in January last year, will continue to be in force once the proposed changes take effect, according to SEBI.

Here's a summary of restrictions imposed by SEBI in January 2025: ​

• Educators must use only historical stock data with at least a three-month lag
• Unregistered educators restricted from providing investment advice under the guise of education
• Such information cannot be displayed, discussed or quoted in discussions in any form, especially material that could be confused as a recommendation

Here are answers to a few frequently asked questions (FAQs) on the subject:

What kind of changes has SEBI suggested regarding using market data in educational programmes?

It has proposed a uniform 30-day lag on stock price data used for educational or training purposes. This lag would apply to both data sharing and data usage, effectively barring the use of live or near-real-time prices in educational content.

Why is SEBI tightening rules related to the use of market data in educational content?

SEBI aims to prevent investor harm and regulatory arbitrage.

Does SEBI plan to ban stock market education altogether?

No.

Are there any exceptions to the proposed rules?

The consultation paper does not specify broad exceptions. However, registered investment advisors will be permitted to use live data while providing advisory services, subject to existing regulatory norms.

Will earlier restrictions on educators continue?

Yes. SEBI has stated that its existing restrictions -- including those notified in January 2025 -- will remain in force even after the proposed changes take effect.

Until when can the public submit feedback on SEBI’s proposal?

SEBI has invited public comments on the consultation paper until January 27.