SEBI Update: Guidelines in pursuance of amendment to SEBI KYC Registration Agency (KRA) Regulations, 2011

SEBI vide circular dated April 06, 2022, has specified Guidelines  in  pursuance  of  amendment  to  SEBI Regulations which were issued in 2011 to implement the SEBI {KYC Registration Agency (KRA)}Regulations, With a view to implement  the  regulations  effectively, the  following additional guidelines  are being issued:

1. KRAs shall continue to act as a repository of KYC data in the securities market and shall be responsible for storing,  safeguarding, and retrieving the  KYC documents and submit to the  Board or any other statutory authority as and when required.

2. KRAs shall independently validate records of those clients (existing as well as new) whose KYC has been completed using Aadhaar as an OVD. The records of those clients who have completed  KYC  using non-Aadhaar  OVD  shall be validated only upon receiving the Aadhaar Number.

3. During the process of validation, KRAs shall validate the following details:

 a. Aadhaar through   Unique   Identification   Authority of   India   (UIDAI) authentication/verification mechanism.

 b.Mobile number and e-mail ID using OTP validation (only in cases where the mobile  number  and  e-mail  ID  provided  by  client  are  not  seeded  with Aadhaar)

c. PAN using the Income Tax Database.

4. The KRAs shall develop systems/mechanisms in consultation with SEBI and in co-ordination with each other,  and shall follow uniform internal guidelines detailing aspects of identification of  KYC  attributes and procedures for  KYC validation.

The validation of all KYC records (new and existing) shall commence from July 01, 2022

Circular Link:

https://www.sebi.gov.in/legal/circulars/apr-2022/guidelines-in-pursuance-of-amendment-to-sebi-kyc-registration-agency-kra-regulations-2011_57676.html

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