Sebi to tweak account aggregator framework to curb misuse of financial information

Mumbai: The Securities and Exchange Board of India (Sebi) Tuesday proposed to tweak the account aggregator(AA) framework to curb misuse of financial information in frauds and mis-selling of products.

"It is notable that though there are various safeguards in place and consistent communication advising caution, consumers sometimes adopt unsafe practices of sharing confidential information such as user IDs, passwords, OTPs, account numbers with third parties; authorising / empowering third parties to operate their accounts; or providing access to their financial information to third parties," Sebi said in a discussion paper.

"Such unsafe practices lead to frauds being perpetrated or funds and securities being misappropriated or financial products/services being mis-sold or customers being subjected to unsolicited cross-sell or upsell."