Sebi will join ecosystem of account aggregators, says President Madhabi Buch
In a big effort to make financial data available easily and on a single platform, the Securities and Exchange Board of India (SEBI) said the market regulator will join the entire ecosystem of account aggregators (AA ).
Sebi Chairman Madhabi Puri Buch said, “Sebi will join the ecosystem of account aggregators. We are in the implementation phase where we are exchanging data formats with our market players. Buch was speaking at Manthan, an ideathon to support new ideas and innovations in the securities market. The conference is organized in association with other market infrastructure institutions.
She further added that the entire trading system, depository system as well as the entire mutual fund system will soon be online in the AA systems.
AA is an RBI regulated entity that allows individuals to share and access data from one financial institution to another in a consolidated network of account aggregators. These players have been granted permission to access and share data by the RBI.
The AA ecosystem is a UPI moment for the lending ecosystem as it will enable data sharing seamlessly and quickly and without the need for physical documents.
Speaking about the data made available to each user, Buch said: “As far as Sebi and the markets are concerned, we have made a very conscious and public decision to say that all data, which is data related to the market, which are in the public domain, due to the regulatory mandate, and that’s a ton of stuff, needs to be accessible and free not just for investors, but also for people who can download it, access it, add to it value and doing business with it.
She also said it was an important step because many companies that used the data had objected to its release to individual users.
Nandan Nilekani, president and co-founder of Infosys, and also a member of several digital projects who also spoke at the manthan, said the securities market is experiencing a third phase of technology adoption. “We are in the third phase where the account aggregation system that is being rolled out will allow people to leverage their own data in different ways,” he said.
He further added: “Alongside the real-time nature of transactions, the fact that UPI will be available means that we are going to enter a world where we will have population-scale participation in capital markets with very high volume, very real very low cost. India’s time and asset map will start shifting from physical assets like real estate and gold to financial assets.