Kerala High Court: ED Can Investigate Without FIR in Scheduled Offence Cases (CMRL Matter)  ||  Delhi High Court Upholds TRAI Rule Capping TV Advertisements at 12 Minutes Per Hour  ||  Supreme Court Directs High Courts to Deliver Judgments in 3 Months and Bail Orders in One Day  ||  Supreme Court: Successful Resolution Applicant Cannot Negotiate Further After CoC Approval  ||  Supreme Court: Succession Law Applies, Not Primogeniture, to Ex-Royal’s Private Estate Inheritance  ||  Supreme Court: Writ Jurisdiction Cannot Challenge Arbitrator’s Section 16 Decision  ||  Supreme Court: Sanyasi Status Cannot Be Ground to Reject Land Compensation Claim  ||  Supreme Court: Section 33(1)(a) of Arbitration Act Cannot Alter Nature of Interest in Award  ||  Supreme Court: Society Office Bearers Not Liable for Cheque Dishonour Without Active Business Role  ||  Supreme Court: Asking a Woman to Adjust in Marriage Does Not Amount to Cruelty By In-Laws    

Consultation paper on role of KYC registration agencies/Market infrastructure institutions in performing KYC (Know Your Client) of clients in securities market- (Securities and Exchange Board of India) (13 Jan 2021)

MANU/SPRL/0002/2021

Capital Market

SEBI has prescribed various guidelines with regard to client KYC process, Use of technology for KYC, e-KYC Process, In-Person Verification, KYC Registration Agency (KRA) etc.. At present, KYC of clients in the securities market is conducted by SEBI Registered Intermediaries (stock brokers, depository participants, RTAs) and then Registered Intermediaries (RI) upload KYC records in the KRA/CKYCR system. The role of KRAs is centralization of the KYC records, ascertaining the upload of KYC documents and sharing KYC records with SEBI registered intermediaries as and when required. The responsibility of conducting the KYC and maintenance of records rests with the RI and KRA is only a repository of KYC records.

In the existing KYC process, every RI has to invest in infrastructure, manpower, technology, and implement processes which often vary between intermediaries. Also, in the eventuality of cancellation of registration of RI, original KYC documents collected by it may not be available to subsequent RI and Investor has to undergo KYC process again.

In order to achieve multiple objectives of standardizing the KYC process, making the KYC process more robust, avoiding duplication, saving cost to RI etc., a modified process for KYC in securities market has been envisaged. It is being proposed that the KYC and account opening process may be separated by doing client KYC through KRAs (which includes Market Infrastructure Institutions like Stock Exchanges, Depositories). This would ensure an end to end secured KYC process including Aadhaar authentication, independent verification of Officially Valid Document (OVD) / Income Tax Permanent Account Number (PAN), document safekeeping, technological innovations, standardization, cyber security norms, etc. While KYC will be responsibility of RIs and KRAs, documentation for opening of account for entering into transaction shall continue to be the responsibility of concerned RI.

A consultation paper on the proposed role of KRAs / MIIs in performing KYC of clients in securities market has been issued by SEBI on January 13, 2021 and public comments on the same have been invited by February 15, 2021.

Tags : CONSULTATION PAPER   ROLE   KYC REGISTRATION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved