SEBI Circular Forces Stock Gaming Apps to Shut Down and Reevaluate

As of May 24, a circular was issued by SEBI prohibiting stock exchanges and intermediaries in India from sharing time-sensitive share price information with fantasy trading platforms that gamify stock trading in real-time.

In the week after the Securities and Exchange Board of India (SEBI) announced that such services should cease operation for the time being, nearly half a dozen startups focused on stock gaming have either shut up shop, paused operations, or are considering pivotal moves. It is becoming increasingly difficult for companies that use dated data to retain young customers, to continue to appeal to them as the appeal of leisure or educational live gaming and simulations is fading.

As part of the latest wave of startups to feel the heat, Trinkerr, founded and backed by Accel and Kunal Shah, has paused the development of its gaming product to contemplate its next move. An app for fantasy stocks backed by Dream Sports – Investro – has been discontinued and withdrawal requests are being accepted for it. Market regulators have ordered stock exchanges, clearing companies, and depositories to review the fees they charge members such as stock brokers and depository participants to ensure that they remain competitive. 

A market infrastructure institution (MII) refers to a market institution such as an exchange, clearing corporation, or depository. Brokers bear the cost of providing these services t

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