Sebi on Tuesday came out with a proposal on collating and defining use cases of Financial Information Users (FIUs) in the Account Aggregator framework in securities markets.
This is aimed at improving the safeguards within the Account Aggregator or AA framework to curb misuse of the financial information in frauds and mis-selling.
An Account Aggregator, a RBI-regulated Non-Banking Finance Company (NBFC), helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network.
AAs cannot see or store customer data since the data processed through them is encrypted, they merely transmit it from one financial institution to another based on a customer’s direction and consent.
In its consultation paper, Sebi said that there could be certain situations in the securities market when “financial information” of a client could be sought using the AA framework. These inclu
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