Sebi introduces uniform data sharing policy for research purposes

Markets regulator Sebi on Friday introduced a uniform data sharing policy for stock exchanges, clearing corporations, and depositories, categorising data as publicly shareable and non-public data for research purposes. The policy is aimed at balancing data accessibility for research with privacy and confidentiality concerns, ensuring transparency and protection in the securities market.

The regulator earlier introduced a policy for securities market data access in February 2022. This required free dissemination of mandated 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 data for research while addressing privacy concerns.

"Accordingly, it has now been decided to have a uniform policy for stock exchanges, clearing corporations and depositories respectively, for sharing data separately for only research/ research publications undertaken by accredited academic institutions. Data shared with vendors for commercial purposes shall not fall under this policy," Sebi said in its circular.

Accordingly, stock exchanges, depositories and clearing corporations have been asked to segregate data available, for each market segment, with them into two basket.

The data in the first basket can be publicly shareable data, which includes aggregate and anonymised information such as business growth, trading statistics, investor grievances, and shareholding patterns.

It also covers historical trade prices, margins, and volatility data, with up to 2 GB provided free of cost per researcher annually. However, high-volume data requiring additional processing may involve a cost-based fee.

"The principle should be to avoid disclosing any personal, sensitive or confidential information in public domain," Sebi said.

The data in the second basket will contain information, which cannot be shared publicly. This includes sensitive or personal information, such as KYC details, client-wise positions, trade logs, and fund/pay-in details and anonymised data that could indirectly identify individuals/entities.

Sebi has directed market infrastructure institutions (MIIs), comprising stock exchanges, clearing corporations, and depositories, to identify and categorise data into the two baskets and share the categorised data list with the regulator within 60 days for approval.

They have been asked to ensure that data in basket 1 is available in a stakeholder-friendly format.

Also, they have been asked to provide sample data files and a data request form on their websites for researchers.

Sebi said that researchers must justify their data requests for research purposes.

The circular is effective immediately, and MIIs have been asked to report implementation status to Sebi within 3 months.

In a separate circular, Sebi has asked listed entities to adhere to the industry standards to ensure compliance with Business Responsibility and Sustainability Report (BRSR) Core disclosure requirements.

This circular is applicable from FY25 onwards.

The regulator, in consultation with the Industry Standards Forum (ISF), has introduced industry standards to streamline and standardise 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 like greenhouse gas emissions, water and energy use, circularity, and employee well-being.

The ISF, consisting of representatives from ASSOCHAM, CII, and FICCI, developed these standards with inputs from stock exchanges and Sebi.

The standards will be published on the websites of the stock exchanges and the three industry associations.