Sebi comes out with terms of usage of market data

With an aim to enhance the ease of accessibility and usability of data disseminated in public by various data sources in securities market, Sebi has asked market intermediaries to make available such data to users, 'free of charge' both for 'viewing' and for download.

Financial markets are traditionally data-rich and data-driven and with ever-growing financial markets, the volume and variety of data have also increased manifold over the years and will continue to do so.

"With increasing size and complexity of financial markets, addressing information asymmetry and having adequately informed investors and multiple stakeholders in the market cannot be overemphasised," Sebi said in a circular on Friday.

Further, given the large variety and volume of information in the markets, the value-added service providers also have a crucial role to play in making such information available to the stakeholders in a more comprehendible form.

Therefore, in order to further enhance the quantum as well as the ease of accessibility and usability of data disseminated in public by various data sources in Indian securities market, including market infrastructure institutions (MIIs), Sebi, through its Market Data Advisory Committee, reviewed the extent of free access and usage of data being provided in the public domain.

In this regard, the regulatory intent behind public dissemination of data in a disclosure based regulatory regime was deliberated in detail by Market Data Advisory Committee (MDAC).

Accordingly, the regulator has come out with a framework for market intermediaries including the other data sources in securities markets with regard to terms of usage of data provided by data sources in Indian securities markets.

"As far as the data provided by various data sources in Indian securities markets pursuant to regulatory mandates for reporting and disclosure in public domain are concerned, such data should be made available to users, free of charge both for 'viewing' the data as also for download in the format as specified by regulatory mandate for reporting, as well as their usage for the value addition purposes," Sebi said.

Further, apart from the data made available free of cost, data which is chargeable should be appropriately identified as such in public domain, it added.

The decision has been taken keeping in view the deliberations and recommendations of MDAC on this issue.

Image: PTI