Stocks

NSE’s data centre opens doors for R&D, innovation

KS Badri Narayanan Chennai | Updated on April 23, 2021

Researchers should capitalise on thiscloud platform

The National Stock Exchange recently launched a cloud-based research facility — the NSE Data Room (NDR) — that aims to encourage research based on Indian capital markets, and help researchers access and analyse historical orders and trade data.

“Such a facility will not only allow usage of data available within the NSE but also provide an enabling platform that paves the way for a wider gamut of research opportunities,” said India's premier exchange.

According to the NSE, the NDR is a cloud-based data repository system with basic analytical tools and a software environment that can be accessed from any part of the country.

Checks and Balances

“To access the NDR for their research objectives, interested researchers need to send proposals to NSE’s Economic Policy and Research (EPR) department,” the exchange stated. The review process for submitted proposals would include approval from an independent, external committee of referees, consisting of eminent academics in the field.

Following this, they would be eligible for an NSE Research Grant (NRG) in the form of a time-bound access to the NDR to pursue their research interests. Such a grant will not involve any other consideration, monetary or otherwise.

How to source

In 2019, markets regulator SEBI had also unveiled data-sharing policy to meet a host of requirements such as analytics projects, research activities, and academic studies etc.

“Data sharing policy is aimed at streamlining the process of data sharing and formalising data protection measures to prevent data from misuse and unauthorised access,” SEBI had said.

This policy is principles-based, essentially to ensure a seamless process for sharing of data.

Data seekers are required to adhere to all relevant regulatory requirements, including those relating to the ethical use of data. As a general rule, data shared will be mostly historical, anonymised and the data seekers will be required to sign an undertaking of confidentiality and non-disclosure. Data, which are at least two years old, will be shared under this policy, SEBI had said.

Dearth of research papers

These are steps in the right direction. First, the move will create a level-playing field for all, ensuring that even small-sized market participants can access the 'crucial' data and usher in a culture of data analysis in capital markets. Sadly, in India, not many research papers have come out on capital markets.

The last paper SEBI published on its website was on September 10, 2004. The paper was on “Market for Corporate Control and Takeover Regulations: Trends and Analysis”. On the NSE, “Mispricing in single stock futures: Empirical examination of Indian markets,” was the last research paper that was published in November 2015.

This signals the difficulty in getting genuine data from the SEBI and exchanges for research purposes. SEBI and exchanges should also tie up with institutions so that management students can access the data easily for research.

On their part, institutions too should approach bourses and the markets regulator for data-sourcing in order to ensure innovation and widen the investment culture.

Published on April 23, 2021

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