01 Nov Privacy Concerns Over Aadhaar-Demat Account Linking Spook FPI’s
Foreign portfolio investors were reported to have expressed their qualms over a diktat by the Securities and Exchange Board of India (SEBI) that mandates the linking of Aadhaar with all demat accounts.
SEBI had previously instructed stock exchanges to stop the accounts of clients who fail to submit their Aadhaar information by December 31. The order however, was vaguely worded, which is why FPIs sought further clarification with SEBI on the matter.
One of the concerns that had apparently unnerved FPIs, particularly those who have authorised a local depository participant to manage funds on their behalf, is the fact that SEBI’s order may open up information privacy issues. Sudhir Bassi, partner at Khaitan & Co. added that it could just put undue burden on FPIs since SEBI can already access foreign portfolio investor transactions through the stock exchanges and custodians.
Source: Business Standard