Finshots Daily Why SEBI wants trading academies to step back from live data
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Jan 8, 2026 SEBI is cracking down on trading academies using live data for education, highlighting the rise of unregulated influencers in this space. The potential harms of misleading education on retail traders are alarming, revealing a pattern of academies masquerading as trading firms. A proposed solution includes a compromise on data usage, suggesting a shift to a 30-day lag. SEBI aims to ensure that educators adhere to regulations, promoting safer trading practices while avoiding the pitfalls of gamified, real-time trading apps.
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Trading Academy Scandal Exposed
- SEBI fined a financial influencer and clawed back ₹546 crore for running a trading academy that acted like a trading firm.
- The host cites similar past cases like Asmita Patel's academy to show this was a pattern of disguised advisory.
Retail Traders Face Staggering Losses
- SEBI data showed 91% of equity derivatives traders lost money in 2025, highlighting extreme retail losses.
- This demonstrates the high stakes and why unregulated advisory-like education is harmful.
Gamified Trading Looked Like Casinos
- Platforms gamified mock trading by using real-time prices and cash prizes, effectively creating unregulated stock casinos.
- SEBI intervened to ban real-time pricing in such setups and required a one-day data lag initially.