To enhance the role of KYC Registration Agencies (KRAs), the markets regulator has notified new norms to make them responsible to carry out independent validation of the KYC records uploaded onto their system by the Registered Intermediary (RI).
The intermediary will have to integrate its systems with the KRA to facilitate the seamless movement of KYC documents to-and-from the intermediary to the KRA.
To enhance the role of KYC Registration Agencies (KRAs), the markets regulator has notified new norms to make them responsible to carry out independent validation of the KYC records uploaded onto their system by the Registered Intermediary (RI).
Besides, such agencies will have to maintain an audit trail of the upload/modification/download with respect to KYC records of clients, SEBI said in a notification on Friday.
Also, the intermediary will have to integrate its systems with the KRA to facilitate the seamless movement of KYC documents to-and-from the intermediary to the KRA.
Now it is mandatory to obtain prior approval of the Securities and Exchange Board of India (SEBI), whenever there is a change in the controlling interest of KRA.
"KRA shall carry out an independent validation of the KYC records uploaded onto its system by the intermediary in such a manner as specified by the Board (Sebi) from time to time," the regulator said.
To give these effects, Sebi notified KYC (Know Your Client) Registration Agency or KRA rules.
This comes after SEBI's board approved a proposal in this regard last month.
KRA provides for centralized storage/digitization of the KYC records in the securities market.
The client who is desirous of opening an account/trade/deal with the Sebi-registered intermediary should submit the KYC details through the KYC Registration form and supporting documents.
The intermediary performs the initial KYC and uploads the details on the system of the KRA. This KYC information can be accessed by all the registered intermediaries while dealing with the same client.