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SEBI Asks Registered Intermediaries To Facilitate Online KYC

SEBI Asks Registered Intermediaries To Facilitate Online KYC
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The Securities and Exchange Board of India (SEBI), has announced that every SEBI Registered Intermediary (RI) is required to use an electronic signature (eSign) to undertake online Know Your Customer (KYC) and Customer Due Diligence (CDD). It says that the investor’s KYC should be completed through online/app-based KYC, in-person verification through video, online submission of officially valid documents (OVD), and other documents under eSign. For the same, investors can visit the website/app/digital platform of the RI and fill the online KYC form and submit the required documentation online. 

Further, the name, photograph, address, mobile number, email ID, bank details of the investor would be captured online along with a signed cancelled cheque. “eSign service is an online electronic signature service that can facilitate an Aadhaar card holder to forward the document after digitally signing the same, provided the eSign signature framework is operated under the provisions of the second schedule of the Information Technology Act and guidelines issued by the controller,” read the SEBI’s circular. 

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Also, SEBI has permitted RI to implement their app for undertaking online KYC of investors. The app should facilitate taking photographs, scanning, video capturing, and so on. “RI shall ensure that the process is a seamless, real-time, secured, end-to-end encrypted audio-visual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. RI shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations,” says SEBI. 

The Kayzad Hiramanek, EVP-Customer Service & Operations of Bajaj Allianz Life Insurance believes, “This is a welcome announcement to facilitate immediate KYC verification through online aadhar authentication. It will assist the industry to restart the process of paperless KYC for their online customer onboarding journeys. Considering the present situation, this facility has been introduced at an opportune time to make the on-boarding process digital, when meeting customers is almost impossible.”

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