Markets regulator Sebi on Tuesday proposed that stock exchanges and other market infrastructure institutions set their own policy for sharing data for research purposes to promote data democratization, privacy and accountability.
However, data shared with vendors for commercial purposes will not be subject to this policy, Sebi suggested in its consultation paper.
The markets regulator has a data sharing policy to share anonymous data that is not publicly available. However, since Sebi is not the creator of most market data, its Market Data Advisory Committee (MDAC) deliberated on the scope of data sharing as per Sebi’s existing data sharing policy.
The committee suggested that to strike a balance between data privacy and data access, organizations, which are the actual source of the data, will need to have a policy on collection, processing, storage, dissemination and sharing. data exchange. .
Accordingly, the regulator, in its consultation paper, proposed that “stock exchanges, depositories and clearing companies have their own policy to share data separately for research purposes only.”
The regulator has proposed that market infrastructure institutions (IMIs) – stock exchanges, depositories and clearing corporations – should segregate the available data, for each market segment, into two baskets.
The data in the first basket will be those that can be shared with the public. This should only be aggregated and analyzed data. This basket will also include reporting and disclosure data required by regulators. The principle should be to avoid the disclosure of any personal, sensitive or confidential information that is in the public domain.
The data in the second basket will contain information that cannot be shared with the public. This data would include KYC information/business records/holding details of an entity among others with the identity of the entity. This would also include anonymous data that could be used to identify an entity directly or indirectly.
It has been proposed that MIIs identify the data in the baskets and frame their data sharing policy accordingly. Additionally, the categorization of data into the two baskets should be uniform and segmented by market segments for each MII category.
The data available through the first basket should be in a stakeholder-friendly format.
The Securities and Exchange Board of India (Sebi) had sought public comments until October 29 on the proposals.
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