Securities and Exchange Board of India (SEBI) on Friday 20 December 2024 released a policy for all the stock exchanges, depositories, and clearing corporations and the announcement is about data sharing for research. The market watchdog has asked the MIIs to categorize the data into two different baskets.
First basket & second basket of data
The data in the first basket will be sharable and it will include anonymized information like trading statistics, business growth, shareholding patterns, investor grievances, historical prices, and volatility data. Up to 2 BG of these data will be shared for free with each of the researchers annually and if high-volume data is required by the researchers, then that will be processed and offered absent certain fees.
The second basket of data will contain sensitive information including personal details, KYC details, client-wise holding positions, trading logs, details of fund inflows/pay-ins, and anonymous data that can be used for investor identification indirectly.
The purpose of this segregation
SEBI has asked the Market Infrastructure Institutions (MIIs) to segregate data and share it with SEBI within 60 days. This step is to make sure that no sensitive, private information of the investors, or traders comes into the public domain. As the data will be categorized, then only the first basket data will be shared with researchers and not the second basket data. This will help in securing all the personal information of the investors.
The market watchdog has asked the MIIs to make sure that the data in the first basket is in a stakeholder-friendly format and to share sample data files on the websites for researchers to have a look at before placing orders. For placing orders, SEBI has directed the MIIs to have a data request form on the websites as well.
Wrapping up
With the rising cybercrimes, and stock market data thefts, SEBI’s move is like a positive aspect for the users/ investors/ traders. Once this data sharing policies get implemented, then the data will be more secure, and in addition, it will be easy to sort data required for research as well.
Source: MoneyControl
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