Sebi to Restrict Live Market Data for Education

Mumbai, Dec 8 (PTI) Sebi chairman Tuhin Kanta Pandey on Monday said the markets regulator will soon change the rules to prohibit the usage of current live market data for investor education.

The comments came days after Sebi imposed a penalty and ordered disgorgement of Rs 546 crore on 'fininfluencer' Avdhoot Sathe.

Pandey asserted that there is no "regulatory vacuum" with educational rules and added that there may be a "lack of understanding" in this aspect.

"Our regulations clearly say that one cannot give stock tip advice," he told reporters on the sidelines of an event at the largest equity bourse, NSE, here.

He, however, admitted that there has been "inconsistency" in two Sebi circulars dealing with usage of live data for educational purposes and added that Sebi will soon address the issue.


"It is true that there has been an inconsistency in two of our circulars dealing with live data. We will get the consistency on it. Only past market data will be used for educational purposes; current data should not be used," Pandey said.

Sebi had slapped a heavy penalty on Sathe and asked for the disgorgement of over Rs 546 crore of gains.

Citing findings from a recent regulator survey, he rued that 62 per cent of respondents said they made investment decisions based on finfluencer recommendations.

Speaking at the launch of the Past Risk and Return Verification Agency (PaRRVA), Pandey said 'finfluencers' often lure investors with exaggerated or fabricated returns and unscrupulous intermediaries further fuel investor uncertainty with exaggerated claims.

Just over a third of the investors said they had adequate knowledge of the securities market, leaving a large group vulnerable to unverified claims, he said.

There is a need for credible performance data to manage expectations and promote "responsible investing", he added.