SEBI Vows to Bring Clarity as Chairman Acknowledges Gaps in Live Market Data Rules for Educators
In a rare public acknowledgment, SEBI Chairman Tuhin Kanta Pandey has admitted that the regulator’s rules governing the use of live market data by educators and trainers contain internal inconsistencies. Addressing the industry at the pilot launch of the newly created PaRRVA — the Past Risk and Return Verification Agency, Pandey promised that SEBI would move swiftly to “bring consistency” to overlapping circulars that have caused widespread confusion among market educators, algo trainers and content creators.
The admission comes at a time when India’s fast-expanding financial education and finfluencer ecosystem is under intense scrutiny. The industry, which relies heavily on real-time charts and market feeds for teaching, has raised concerns about compliance uncertainty following SEBI’s latest circular restricting the use of live data.
PaRRVA Launch Marks SEBI’s Push for Transparency Amid Misinformation Concerns
Pandey was speaking at the launch of PaRRVA, a first-of-its-kind global framework jointly designed by CARE Ratings and the National Stock Exchange (NSE) to independently verify the performance claims of investment advisers, research analysts and trading members. PaRRVA is intended to curb practices such as cherry-picked results, unverifiable backtests and exaggerated returns — a growing problem in India’s digital investing space.
By enabling independent verification of performance metrics, SEBI aims to address the rising cases of misleading communication targeted at retail investors. The regulator believes that transparency in performance reporting is essential to restoring trust in the advisory ecosystem, which has been distorted by self-proclaimed educators publishing unverifiable claims to attract followers.
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Two Conflicting SEBI Circulars Spark Confusion in the Education and Algo Training Industry
The heart of the controversy lies in the conflicting language of two SEBI circulars.
The new circular, released as part of SEBI’s crackdown on indirect stock-tipping, bans educators from using live or recent market data entirely, requiring them to rely only on data that is at least three months old. The objective is to prevent finfluencers from giving disguised trading calls under the guise of “education”.
However, an older circular from 2023 — part of the registered investment adviser framework — contains a more permissive clause, allowing educational entities to use live market feeds as long as no actionable advice is provided.
This contradiction has left many educators unsure about what constitutes compliance. Algo trainers, options educators and technical analysis mentors who rely on intraday charts for teaching say the restriction may compromise the quality of genuine financial education.
Pandey acknowledged this regulatory paradox openly, saying,
“There is an inconsistency between two of our circulars on live market data… we will bring consistency.”
Pandey Rejects Claims of a Regulatory Vacuum and Blames Misinterpretation, Not Absence of Rules
Despite the confusion in the ecosystem, Pandey strongly dismissed the notion that SEBI has left a regulatory void for finfluencers to exploit. Instead, he argued that rules already exist, but are frequently misunderstood or selectively interpreted by market participants.
In a pointed remark, he said,
“There is no regulatory vacuum… only a lack of understanding.”
SEBI maintains that unregistered individuals have never been permitted to offer stock tips, advice, inducements or performance guarantees — regardless of whether they label themselves as “educators”. According to the regulator, the core problem is not education itself but mis-selling disguised as education, which continues to pose risks for unsuspecting retail investors.
Pandey clarified SEBI’s position further, stating,
“Live data should be for education only, not for current market action.”
SEBI’s Priority Remains Investor Protection, Not Restricting Genuine Financial Education
SEBI’s tightening norms come at a time when retail participation in equities has surged, accompanied by a rising ecosystem of influencers promoting high-risk strategies without regulatory oversight. The regulator’s stance, as reiterated by Pandey, is centered on ensuring that investors receive unbiased information and are not misled by claims of extraordinary performance or cherry-picked trades.
PaRRVA, once fully operational, is expected to play a pivotal role in distinguishing credible professionals from those who rely on marketing tactics rather than verified track records. The initiative is designed to raise industry standards and create a transparent environment where investors can independently verify the credentials and performance of advisers.
As SEBI Prepares to Harmonise Rules, the Industry Awaits Clearer Guidance
SEBI’s acknowledgement of inconsistency and its commitment to harmonise rules has provided temporary relief to the education and training community, which has been seeking clarity for months. However, until the regulator issues a unified circular, uncertainty will persist for educators who depend on real-time charts to teach risk management, strategy design and market structure.
For now, the message from SEBI is clear: education is welcome, mis-selling is not. As the regulator works to bring coherence to its framework, India’s rapidly growing investor education ecosystem awaits clearer guidelines that balance regulatory protection with legitimate teaching needs.
