The capital markets regulator is cracking down on illicit gaming apps that offer virtual trading services and fantasy games. This and more in today’s ETtech Top 5. Also in this letter: ■ Nazara Tech promoter sells 6.

38% stake ■ Elon Musk's xAI raises $6 billion ■ How much cyber fraud cost Indians Sebi cracks the whip on gaming apps involved in virtual trading The Securities and Exchange Board of India (Sebi) has asked exchanges and depositories not to share real-time price data with third parties to curb gaming apps providing virtual trading services and fantasy games based on the movement of share prices of listed companies. Tell me more: Apps providing virtual trading services have mushroomed over the past few years in the wake of high retail investor appetite for dealing in stocks. Such users don’t engage in real-time trading through stock brokers but compete with other participants based on fictional trading strategies and portfolios.

Monetary incentive: “If the data is used for education or fun purposes it's fine, but monetary incentives can't be allowed based on the performance of the virtual stock portfolio,” said a regulatory official. “Then it's like dabba trading, which is illegal.” Sebi said that market price data may be shared for investor education and awareness activities without offering any kind of monetary incentive to the participants, and with a lag of one day.

It has also asked stock exchanges to carry out due diligence while sharing such.