SEBI SEBI cracks down on gaming apps offering virtual trading services, fantasy games
Mumbai/IBNS: The Securities and Exchange Board of India (SEBI) is cracking down on gaming apps offering virtual trading services and fantasy games based on the movement of real-time share prices of listed companies, which have mushroomed over the past few years in the wake of high retail investor appetite for stock trading, reports said.
According to reports, in a move aimed at quashing such activities, the capital market regulator has directed exchanges and depositories not to share real-time price data with third parties.
"If the data is used for education or fun purposes it's fine, but monetary incentives can not be allowed based on the performance of the virtual stock portfolio. Then it's like dabba trading, which is illegal," a regulatory official was quoted as saying by Economic Times.
The action of SEBI, which will not impact media agencies providing real-time data feeds, effectively ends all platforms offering trading competitions, demo trading, and contracts for difference (CFDs), as per reports.
In recent years, numerous stock gaming platforms have emerged in India, which do not involve real-time trading through stock brokers but allow users to compete based on fictional trading strategies and portfolios.
Users of these platforms pay a membership fee to participate, and top performers receive prizes, according to reports.
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