The Securities and Exchange Board of India (SEBI) has sought coordination from the Insurance Regulator Insurance Regulatory and Development Authority of India (IRDAI) to make the insurance details of policyholders available to in the online Consolidated Account Statements (CAS), SEBI Chairperson Tuhin Kanta Pandey said at an event.
Speaking on the sidelines of an event conducted by Sahamati, he mentioned different use cases of making different Account Aggregators (AA) interoperable from capital market investors’ point of view. He said the AA framework will be used to improve upon the CAS.
“Now you have, for example, the security markets, information, both Demat, non-Demat, mutual funds, stocks, across brokers. The RBI governor announced the other day that semi-regulated depositories, which is basically CDSL and NSDL, could also have the access to get the information on funds and places like deposits. I have also written to IRDAI chair that we should also have this insurance information as well, so that you get it virtually like your financial ledger,” Pandey said at the event held in Mumbai on Thursday.
Data sharing
The Reserve Bank of India announced as part of its regulatory and development measures that account aggregators, the facilitators of data sharing between financial institutions, are inter-operable. This means that depositors can now choose which AA they want to process their payments and share data. This is a change from the previous method when depositors had to use the AA that banks had tie ups with. In the statement. RBI also said the eCAS which is a statement containing capital market transactions of investors will now also have bank deposit information. SEBI Chairperson’s proposal to the IRDAI means that customers will have information of bank deposits, investments and insurance policy details at one place.
The capital market regulator also spoke about the now-paused roll-out of the MDR. The NPCI said that a merchant discount rate of 0.02 per cent on UPI payments will be implemented on capital market transactions. Many brokers including founder of Zerodha Nitin Kamath had underlined the potential losses to the industry because of this. In this light, Pandey said that the SEBI is “in conversation with NPCI.”
NPCI has however postponed the implementation of MDR until diwali.
SEBI chairman also said that discussions and meetings regarding Stock Lending and Borrowing Mechanism (SLBM) were underway in the working group and that a consultation paper regarding that is a “high priority” for the regulator.