To reinforce the position of KYC Registration Businesses (KRAs), the markets regulator has notified new norms to make them accountable to hold out impartial validation of the KYC data uploaded onto their system by the Registered Middleman (RI).
Moreover, such businesses should preserve an audit path of the add/modification/obtain with respect to KYC data of purchasers, Sebi mentioned in a notification on Friday.
Additionally, the middleman should combine its programs with the KRA to facilitate seamless motion of KYC paperwork to-and-from the middleman to the KRA.
Now it’s obligatory to acquire prior approval of the Securities and Alternate Board of India (Sebi), each time there’s a change within the controlling curiosity of KRA.
“KRA shall perform an impartial validation of the KYC data uploaded onto its system by the middleman in such a fashion as specified by the Board (Sebi) from time-to-time,” the regulator mentioned.
To provide these results, Sebi notified KYC (Know Your Consumer) Registration Company or KRA guidelines.
This comes after Sebi’s board accredited a proposal on this regard final month.
KRA supplies for centralized storage / digitization of the KYC data within the securities market.
The consumer who’s desirous of opening an account/commerce/cope with the Sebi-registered middleman ought to submit the KYC particulars by means of the KYC registration type and supporting paperwork.
The middleman performs the preliminary KYC and uploads the main points on the system of the KRA. This KYC data could be accessed by all of the registered intermediaries whereas coping with the identical consumer.