 "Sebi at work: Curbs on account aggregator usage, commodity brokers barred")
The Securities and Exchange Board of India (Sebi) has sought public comments on additional safeguards for the account aggregator framework to curb the misuse of financial information such as frauds, miss-selling, and other unsolicited cross-selling. Account aggregator network secures digital data and provides access and sharing process based on consent. Users of the account aggregator can have access to financial information like that on bank deposits, equity investments, mutual fund units, bonds, GST returns, and other such details. To prevent potential misuse, Sebi is mulling any exclusion or addition to the presently defined users for the framework along with measures to address consumer concerns. The market regulator has sought comments by August 31.
Regulator gives relief to commodity brokers
The markets regulator on Tuesday amended its previous circular on trading preferences between exchanges. In a circular dated June 21, Sebi had asked stock brokers to provide investors and traders with access to all exchanges for the same segment. The move came amidst the virtual monopoly of one exchange in the securities market and risks associated with it. Sebi, now, has said that the provisions will not be made applicable to brokers registered exclusively with commodity derivatives exchanges. Further, in the fresh change, Sebi has directed to provide an opt-out facility to new as well as existing clients while the negative consent is required to be obtained in writing and maintained as records for at least five years. Stock brokers have time till October-end to offer trading preferences. Nearly two dozen mainstream stock brokers are yet to implement it.
The markets regulator on Tuesday amended its previous circular on trading preferences between exchanges. In a circular dated June 21, Sebi had asked stock brokers to provide investors and traders with access to all exchanges for the same segment. The move came amidst the virtual monopoly of one exchange in the securities market and risks associated with it. Sebi, now, has said that the provisions will not be made applicable to brokers registered exclusively with commodity derivatives exchanges. Further, in the fresh change, Sebi has directed to provide an opt-out facility to new as well as existing clients while the negative consent is required to be obtained in writing and maintained as records for at least five years. Stock brokers have time till October-end to offer trading preferences. Nearly two dozen mainstream stock brokers are yet to implement it.