The new regulations target Market Infrastructure Institutions (MIIs) like stock exchanges and depositories, as well as registered market intermediaries. These entities are now prohibited from sharing real-time price data with any third party unless it is strictly necessary for the smooth functioning of the securities market or to comply with regulations. This, however, will not impact media agencies providing real-time data feeds.

SEBI mandates formal agreements outlining the purpose of data sharing and ensuring it supports a well-functioning market. These agreements and the list of entities receiving real-time data will be subject to annual review by the MIIs or intermediaries.

The new guidelines come into effect 30 days after the issuance of the circular. SEBI clarified that market data can still be shared for investor education, but with a one-day delay and without any financial incentives. The regulator also directed MIIs and intermediaries to conduct thorough due diligence before sharing data and implement measures in agreements to prevent misuse.