Sebi Proposes New 30-Day Rule for Educational Market Data
The Securities and Exchange Board of India (Sebi) has taken a significant step to clarify and tighten the rules governing how market data is used for educational purposes. In a consultation paper released on 7 January 2026, the market regulator proposed a uniform 30-day lag for stock exchanges to share data like prices and volumes with trading academies. Furthermore, it suggested that these academies limit their training materials to data that is at least 30 days old.
Ending Confusion: From Conflicting Circulars to a Single Rule
This new proposal aims to resolve confusion created by two earlier Sebi circulars. In May 2024, Sebi had allowed exchanges to share data for education with a one-day lag, while restricting live data for trading. Later, in January 2025, another circular stated that educational institutions could only use three-month-old data in their sessions.
This discrepancy left trading academies in a bind, unsure whether they could use one-day-old or three-month-old information. The ambiguity was highlighted during the recent case involving Avadhut Sathe Trading Academy (ASTA). In December 2025, Sebi issued an order against the academy for providing stock recommendations using market price data. ASTA challenged this, partly arguing a "regulatory vacuum" regarding the permissible data lag.
Why a Time Lag is Essential for Market Integrity
Sebi's insistence on a lag is rooted in preventing the misuse of sensitive, near-real-time information. Live or very recent data has been exploited in the past for unauthorized stock recommendations, market manipulation, and to fuel illegal parallel markets like dabba trading.
In 2022, Sebi imposed penalties of ₹11 crore on academic Ajay Shah and others for misusing confidential exchange data to develop and sell algorithmic trading software. Dabba trading operators, who run illegal off-market betting platforms, rely on live exchange prices to settle bets. Without access to timely data, their illicit software becomes ineffective.
Industry feedback indicated that the previous one-day lag was too short and risky, while the three-month lag made educational content outdated and irrelevant. The new 30-day window seeks a middle ground, keeping material reasonably current for learners while significantly reducing the potential for misuse.
Legal Perspectives and the Path Forward
While Sebi believes the 30-day period strikes the right balance, some legal experts urge a focus beyond just timelines. Lawyers like Akshaya Bhansali of Mindspright Legal argue that the core issue is preventing data misuse, and Sebi should enhance its technological surveillance to curb such activities more effectively.
Following the SAT's interim order in the ASTA case, Sebi Chairperson Tuhin Kanta Pandey acknowledged the need to align the 2024 and 2025 circulars, leading to this new consultation. The regulator is now seeking public comments on its proposal to establish a clear, single standard for the educational use of market data, aiming to protect investors and market integrity without stifling legitimate financial education.
