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Account aggregator ecosystem to be tightened

The Securities and Exchange Board of India (Sebi) has asked depositories and asset management companies (through their registrar and transfer agents) to participate as financial information providers (FIPs) in the existing account aggregator framework. (HT_PRINT)Premium
The Securities and Exchange Board of India (Sebi) has asked depositories and asset management companies (through their registrar and transfer agents) to participate as financial information providers (FIPs) in the existing account aggregator framework. (HT_PRINT)

  • The capital market regulator has made it mandatory for FIPs to 'seek approval' of investors before sharing their information with the RBI-approved account aggregators

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The Securities and Exchange Board of India (Sebi) has asked depositories and asset management companies (through their registrar and transfer agents) to participate as financial information providers (FIPs) in the existing account aggregator framework.

The capital market regulator has made it mandatory for FIPs to “seek approval" of investors before sharing their information with the Reserve Bank of India (RBI)-approved account aggregators.

“The FIPs shall share the financial information pertaining to securities markets, through the account aggregator only on receipt of a valid consent artefact from the customer," Sebi said.

FIPs in the securities markets should also verify the validity of investor’s consent, specified dates, and usage, as well as the credentials of account aggregators.

The FIPs should digitally sign the financial information and securely transmit it to the account aggregator after verification of the consent artefact. All responses of the FIPs in the securities markets should be in real time. “There also needs to be adequate safeguards built into IT systems of FIPs in the securities markets to ensure that it is protected against unauthorized access, alteration, destruction, disclosure, or dissemination of records and data," the market regulator said.

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