The Securities and Exchange Board of India (Sebi) has stated its intention to join the account aggregator (AA) framework, chairperson Madhabi Puri Buch has said.
This development is understood to give a boost to the Reserve Bank of India (RBI)-regulated financial data sharing system called account aggregator framework. This will allow customers to share financial information for their mutual fund and stock portfolios with financial service providers, such as wealth management companies, stock brokers and others.
“Sebi indeed will be joining the account aggregator system. We are now in the implementation stage where we are exchanging data and API formats for our market participants. So, the entire repository and mutual fund systems will soon be online on the framework,” Moneycontrol quoted Buch as saying.
What Type of Data Will Be Available On The Platform?
The entire trading system, depository system, as well as the mutual fund system will be live on the account platform ecosystem.
“As far as Sebi and the markets are concerned, we have taken a very conscious and public decision to say that all data, which is market-related and which is in the public domain on account of regulatory mandate, and there’s a ton of it, has to be accessible and free not just to investors, but to people who can download it, access it, add value to it, and make the business of it,” Business Standard reported Buch as saying.
What Will The AA Framework Enable?
The AA framework will enable quick sharing of financial, health, wealth, insurance and other data of the consenting customers to the data consumers, i.e., companies which deal with insurance, loans, finance and others without the need for physical documents.
Who Will Be The Key Data Providers?
The key data providers for the account aggregator ecosystem will be: the National Securities Depository Limited (NSDL), the Central Depository Services (CDSL), the Computer Age Management Services (CAMS), and KFintech.
“Citizens will benefit immensely from having the ability to share their investment data with their financial providers. Until now, financial investment service providers have struggled with the friction they had to deal with to acquire their client’s investment data. With NSDL, CDSL coming on board, the friction will be gone,” said BG Mahesh, co-founder, DigiSahamati Foundation.