Gaming the Markets? Analyzing SEBI’s New Rules and their Wider Impact
Kabir Kumar
(OP Jindal Global University, Sonepat.)
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Abstract
The growing popularity of fantasy stock gaming platforms has raised significant regulatory
concerns for SEBI. These platforms, while providing a risk-free environment for users to
engage in trading, also pose dangers by potentially creating unregulated markets and
fostering unrealistic trading behaviour. To deal with these concerns, SEBI had issued a
circular on May 24, 2024, prohibiting the sharing of real-time stock price data with these
platforms. This essay aims to critically examine this circular along with its effect on fantasy
stock gaming platforms. Alongside the circular, the essay highlights the efforts of SEBI and
stock exchanges to restrain the operation of these platforms.
This essay acknowledges the positive steps of SEBI to protect the investors’ interests, while also underlining the possible disadvantages of the circular, including the hindrance to investor education and creation of regulatory ambiguities. The objective of this essay is to evaluate SEBI’s move and suggest improvements for a more nuanced and balanced regulatory framework. This essay recommends focusing more on “regulating” these platforms to ensure responsible and ethical gaming rather than adopting conservative measures to hinder the operation of these platforms. In this way, the educational value of these platforms will be effectively utilized by the users and regulation of these platforms by SEBI will ensure investor protection.