SEBI proposes 30-day delay for market data in investor educational content

India's market regulator, the Securities and Exchange Board of India (SEBI), proposed on Tuesday to enforce a uniform 30-day delay for the release and utilisation of price data of listed companies for educational and investor awareness activities.

The primary objective of the initiative is to prevent the misuse of market data and, at the same time, keep the educational content useful and relevant for the audience.

In a consultation paper, the market regulator explained that the proposal seeks to clarify the confusion created by its existing rules regarding the use of stock price data for educational purposes.

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“It is proposed that a uniform lag of 30 days for both sharing and usage of price data may be made applicable for educational and awareness activities,” SEBI said.

“The person engaged solely in education shall continue to abide by the provisions of the prohibited activities in the January 2025 circular and all other provisions of the aforementioned circulars shall remain unchanged,” it added.

The market regulator has said that it has invited public comments on the proposal until January 27, 2026.

SEBI has announced that “Public comments are invited on the proposal for sharing and usage of price data for educational purposes."

The regulator has stated that the comments/suggestions should be submitted latest by January 27, 2026.

Presently, two separate SEBI circulars govern the use of price data for educational purposes.

A circular from May 2024 permits the stock exchanges to share price data for educational and awareness activities with a one-day delay at least.

Conversely, a January 2025 circular states that educational entities can use price data only if it is at least three months old.

SEBI also acknowledged that despite the issue of the two circulars for different reasons, their concurrent existence has caused confusion amongst the participants and educators.

SEBI explained that the provision of live or near-real-time price data for educational material could lead to difficulty in distinguishing between investor education and regulated activities like investment advisory or research.

The regulator stated that the analysis of current market prices for the purpose of forecasting future price movements is one of the advisory functions, hence requiring regulatory supervision.

Frequently-Asked Questions (FAQs): SEBI proposal on use of price data for educational purposes

1) What has SEBI proposed regarding the use of stock price data?

SEBI has proposed a rule of a standard 30-day delay across the board for publishing and utilising the price data of all listed companies for the purpose of educational and investor awareness activities.

2) Why does SEBI want a 30-day lag on price data?

The main aim is to stop the market data abuse and to ensure that educational material does not mix up with the regulated activities like investment advising or research, but still, they are active for the students.

3) Who will this proposal apply to?

The proposal is meant for those individuals and institutions that are involved only in investor education and awareness activities, who also have to keep on following the restrictions on prohibited activities laid down by SEBI.

4) Why did SEBI feel the need to issue this proposal now?

SEBI recognised that it created confusion among market players and educators with its circulars of May 2024 and January 2025 that set different timelines for the use of price data. The new proposal aims at clarifying the situation through a single, uniform rule.

5) Until when can the public submit comments on SEBI’s proposal?

The public can send their comments and input to SEBI until January 27, 2026, after which the regulator will consider the feedback before adopting the guidelines.

With IANS inputs