Stock gaming apps in trouble after SEBI circular: Report
Mumbai: Nearly half a dozen startups related to stock gaming are either shutting down, pausing operations, or considering a pivot a week after the Securities and Exchange Board of India (SEBI) banned such services, media reported.
Those using outdated data are struggling to retain young customers as the excitement of live gaming and simulation for leisure or learning fades, reported Moneycontrol.
Among the latest to be affected is Trinkerr, backed by Accel and Kunal Shah, which has paused its gaming product to reconsider its next steps.
Investro, a fantasy stock app backed by Dream Sports, has been discontinued and is processing withdrawal requests.
Trinkerr, which has clarified that it has never been purely a gaming app but focused on educational content with a five-minute data delay, finds its product ineffective under the new mandate.
Trinkerr and Investro are not the only ones facing challenges due to the regulatory changes.
On June 24, SEBI's new regulations for exchanges and market intermediaries, including brokerages, took effect, prohibiting them from providing "live" data to third-party platforms offering virtual trading, fantasy games, or educational courses.
“Investor education and awareness activities (which do not involve any monetary incentives for users) – however, can use a delayed data feed (with a 1-day lag),” the regulator said in a circular dated May 22.
SEBI's crackdown on virtual trading and stock gaming apps comes amid a surge in interest from retail investors, particularly in futures and options (F&O), and concerns about a growing parallel market operating outside its oversight.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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