SEBI becomes part of the “account aggregator” framework, the financial data sharing mechanism will be strengthened

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Language , Updated: August 19, 2022, 7:27 PM

New Delhi, Aug 19 (PTI) Capital markets regulator Sebi on Friday became part of the ‘account aggregator’ framework, which will bolster the regulated financial data sharing system of the Reserve Bank of India (RBI). Joining the Securities and Exchange Board of India (SEBI) account aggregation framework will allow consumers to share information about their mutual funds and stock holdings with financial service providers. Account Aggregator (AA) is an RBI regulated non-banking financial company that allows a consumer to collect information from financial information providers on the basis of their consent.

New Delhi, Aug 19 (PTI) Capital markets regulator Sebi on Friday became part of the ‘account aggregator’ framework, which will bolster the regulated financial data sharing system of the Reserve Bank of India (RBI).

Joining the Securities and Exchange Board of India (SEBI) account aggregation framework will allow consumers to share information about their mutual funds and stock holdings with financial service providers.

Account Aggregator (AA) is an RBI regulated non-banking financial company that allows a consumer to collect information from financial information providers on the basis of their consent.

In this context, financial service providers (FIPs) of the securities market, such as custodians and asset management companies (AMCs), through their registrar and transfer agents (RTAs), may provide financial information relating to the securities market to consumers. .

Experts say the move will allow the entire securities, custodian and mutual fund trading system to be “live” on the account platform ecosystem.

According to the new guidelines, FIPs operating in the securities market will have to enter into an agreement with the account aggregators, which will also mention the rights of both parties and the dispute resolution mechanism. FIPs will only be able to share financial information obtained through the account aggregator after obtaining consumer consent.

Source: navbharattimes.indiatimes.com

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