SEBI Circular on Participation as Financial Information Providers in Account Aggregator framework – 19 th August, 2022

SEBI, vide its circular dated 19 th August, 2022 joined Account aggregator framework. An Account Aggregator (AA), is a Reserve Bank of India (RBI) regulated Non-Banking Finance Company (NBFC) that facilitates retrieval or collection of financial information, pertaining to a customer, from Financial Information Providers (“FIP”) on the basis of explicit consent of the customer. The financial information shared through the Account Aggregator is not stored by the AA and it shall not be the property of the AA. This information is not to be used in any other manner except for the purpose of providing it to the customer or consented Financial Information User (FIU).

Under the purview of RBI Master Directions It is to be noted that RBI has issued Non-Banking Financial Company –Account Aggregator Master Directions dated 02nd September, 2016 for compliance by every Non-Banking Financial Company (NBFC-Account Aggregator) undertaking the business of AA. List of entities mentioned as Financial Information Providers (FIPs) Out of the list of entities mentioned as Financial Information Providers (FIPs) under the Clause 3 (xi) of the Master Directions, the Asset Management Companies (AMCs) through their Registrar and Transfer Agents (RTAs) and the Depositories are inter-alia specified as Financial Information Providers (FIPs) for the purpose of sharing of information. “Financial Information”, as specified in Clause 3(ix) of the RBI Master Directions The FIPs in the securities market will provide the “Financial Information”, as specified in Clause 3(ix) of the RBI Master Directions, to the customers and FIUs who furnish the consent artefact (electronic consent as defined in RBI Master Guidelines) through any of the Account Aggregators registered with RBI. The FIPs in the securities markets shall share the “Financial Information” pertaining to securities markets, through the AA only on receipt of a valid consent artefact from the customer through the Account Aggregator. The consent architecture is detailed under Clause 6 of the RBI Master Directions. Further, the FIPs in the securities markets shall also verify, through appropriate means, the following in the consent artefact: a. validity of consent b. specified dates and usage; and c. the credentials of the AA. Transmission of information to AA Upon due verification of the consent artefact, the FIPs in the securities markets shall digitally sign the financial information and securely transmit the same to the A