Stock market prediction gaming platforms where you guess the direction of stocks and indices for rewards is a regulatorily grey business model, to say the least.

NSE has always been clear that any market data (bid, ask, LTP, etc.) can only be used by the customers of a brokerage firm for trading purposes. Exchanges have IP over this data. Globally, revenues from data feeds are more than transaction fee revenues for exchanges.

For example, in the US, users must pay a data feed fee to see live prices on trading platforms. The more you pay, the better the quality of the data. This tilts the playing field against retail traders in favor of those with deep pockets.

In India, exchanges earn from transaction fees, and everyone trading gets the same quality of data, and for free. This is also one of the reasons why we have a better market infrastructure.

Anyways, NSE published a circular yesterday saying that no platform can offer gaming using data feed of exchange. Exchanges can potentially sue anyone for unauthorized use of their data. There is also a SEBI circular that states. “No person shall organise or offer any scheme/competition/game/ league on securities or related to the securities market.”

We had written on this topic earlier in detail, on why gaming or even copy trading platforms may not be viable due to regulations in India.

View on Twitter →