On Friday, markets regulator Sebi introduced a uniform data sharing policy for stock exchanges, clearing houses, and depositories, categorizing data as publicly shared and non-publicly shared data for research purposes. The policy is intended to balance data accessibility in research with privacy and confidentiality concerns, to ensure transparency and protection in the securities market.
The regulator previously introduced a policy on access to securities market data by February 2022. This required the free distribution of authorized data while ensuring that chargeable data is clearly identified.
The Market Data Advisory Committee (MDAC) reviewed Sebi’s data sharing policy and highlighted the need for a uniform approach to sharing research data while addressing privacy issues.
“Therefore, it has now been decided to have a common policy for stock exchanges, clearing companies and depositories respectively, to share data separately for the publication of research/research only conducted by accredited academic institutions. Data shared with traders for commercial purposes will not be subject to this principle,” said Sebi in its circular.
Accordingly, stock exchanges, depositories and clearing companies have been asked to divide the available data, for each market segment, into two baskets.
The data in the first basket can be publicly shareable data, including aggregated and anonymous information such as business growth, trading statistics, investor complaints, and shareholding patterns.
It also includes historical trading rates, margins, and volatility data, with up to 2 GB provided for free to each researcher per year. However, high volume data that requires additional processing may incur a fee based on the cost.
“The goal should be to avoid disclosing any personal, sensitive or confidential information to the public,” Sebi said.
The data in the second basket will contain information, which will not be shared publicly. This includes sensitive or personal information, such as KYC details, smart customer positions, trade logs, and wallet/payment details and anonymous data that can indirectly identify individuals/entities.
Sebi has directed market infrastructure institutions (MIIs), including stock exchanges, clearing houses, and repositories, to identify and segregate data into two baskets and share the segregated data list with the regulator within 60 days for approval.
They were asked to ensure that the information in basket 1 is available in a way that is acceptable to the stakeholders.
Also, they were asked to provide sample data sheets and a data request form on their websites to researchers.
Sebi said researchers must justify their requests for data for research purposes.
The circular is effective immediately, and MIIs have been asked to report the status of implementation to Sebi within 3 months.
In a separate circular, Sebi has asked listed entities to comply with industry standards to ensure compliance with the requirements of the Business Responsibility and Sustainability Report (BRSR) Core.
This circular is effective from FY25 onwards.
The regulator, in consultation with the Industrial Standards Forum (ISF), has introduced industry standards to guide and standardize the disclosure of the BRSR Core.
The BRSR Core includes Key Performance Indicators (KPIs) based on nine ESG attributes from the original BRSR format, covering areas such as greenhouse gas emissions, water and energy use, sustainability, and employee well-being.
The ISF, comprising representatives from ASSOCHAM, CII, and FICCI, developed these standards with input from stock exchanges and Sebi.
The standards will be published on the websites of the stock exchanges and the three industry associations.
