SEBI ends market data confusion with uniform 30-day delay rule for educational use

Mumbai, May 8 The Securities and Exchange Board of India (SEBI) on Friday moved to end months of uncertainty over the use of market data for educational purposes by introducing a uniform 30-day lag on the sharing and use of such data.

In a circular, the regulator said the revised framework will come into force from 1 July 2026. The move follows concerns raised by market participants and legal scrutiny over conflicting timelines prescribed in earlier Sebi directives.

The confusion originated from two separate circulars issued by the regulator over the past two years. In May 2024, Sebi had barred market infrastructure institutions (MIIs) and intermediaries, including stock exchanges, from sharing price data for educational purposes with a delay of less than one day.

However, a later circular issued in 2025 prescribed a stricter three-month lag for the use of market data in investor education and awareness programmes.

The issue gained prominence 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).

In an ex parte interim order passed in December, SEBI had restrained Sathe and ASTA from accessing the securities market and ordered the impounding of Rs 546.16 crore. The regulator alleged that the institute was providing unregistered investment advisory and research analyst services under the guise of stock market education. Sebi also cited several instances where Sathe allegedly used market data to make stock recommendations.

During the SAT hearings, the appellants argued that the differing timelines under the two Sebi circulars had created a “regulatory vacuum”, leaving ambiguity around what constituted permissible use of delayed market data for educational activities.

Following a consultation process initiated in January this year, SEBI proposed a middle-ground approach by recommending a 30-day lag. Stakeholders had told the regulator that a one-day delay was too short and created room for misuse, while a three-month delay significantly reduced the relevance and usefulness of the data for educational purposes.

In its latest circular, SEBI clarified that the earlier directives were intended to address different aspects of market data usage. According to the regulator, the 2024 circular dealt with the sharing of price data by exchanges, while the 2025 framework focused on defining how old the data must be for it to qualify as being used solely for educational purposes.

SEBI has, however, exempted the National Institute of Securities Markets (NISM) from the revised norms.

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