Stock Exchanges, Depositories, Clearing Corporations Plan To Maintain Own Data Sharing Policies

Given privacy concerns, the Securities and Exchange Board of India has suggested that stock exchanges, depositories, and clearing corporations should establish their own policies for sharing data exclusively for research purposes. Notably, data shared with vendors for commercial purposes will not fall under this framework.

The decision comes after discussions within SEBI's Market Data Advisory Committee. The market regulator has a policy for sharing anonymised data but is itself not the originator. That is why, in order to maintain the authenticity of this data for researchers, these guidelines have been proposed.

The committee got the regulator's attention towards the need for stakeholders to source data from reliable origins and suggested that organisations responsible for data collection and processing should develop their policies regarding data handling.

To implement this policy, the data will be categorised into two distinct "baskets."

The first basket will contain aggregated and analysed data that can be shared with the public. This includes information that is already publicly available on the websites of respective stock exchanges, depositories, and clearing corporations.

Additionally, a reasonable amount of anonymised data—up to 2 GB—can be requested by researchers free of charge. However, if the requested data is extensive or requires further processing, a fee may be charged.

The second basket will include sensitive information that cannot be disclosed publicly, such as Know Your Customer (KYC) details and trade logs. This basket also covers anonymised data that could still lead to the identification of individuals or entities.

All market intermediaries (MIIs) are required to classify their data into these baskets and submit a list of data under each category to SEBI within 60 days.

The first basket's data should be easily accessible and presented in a user-friendly format. Additionally, MIIs must provide a sample of the data categorised under the first basket on their websites and include a “data seeking request form” for researchers to justify their data requests.

This circular is effective immediately, and MIIs are expected to report their implementation status to SEBI within three months.