Allows Centralised
Agencies to Share Customer Info
Making
know-your-client (KYC) process easier for investors, SEBI has notified a set of norms
that allow various market entities like as brokers & MFs to get details
from centralised KYC agencies, rather than carrying out a fresh KYC
verification procedure.
An option available
to a market intermediary is that it may access the centralised KRA (KYC
Registration Agency) system in case of a client, who is already KYC compliant.
"When the client
approaches another intermediary subsequently, the intermediary shall verify and
download the client's details from the system of KRA," the Securities and
Exchange Board of India (Sebi) said in a notification dated March 13, 2014
This norm is subject
to the "receipt of information on change in KYC details and status of the
clients by the intermediary or / when it
comes to the knowledge of the intermediary, at any stage, the intermediary
shall be responsible for uploading the updated information on the system of KRA
and retaining the physical documents."
KRA are institutions
which maintain KYC details of investors.
Wholly-owned
subsidiaries of stock exchanges and depositories are eligible able to act as
KRA.
Last month, SEBI's
board had cleared the proposal of allowing various market entities to get
investor details from centralised KYC agencies instead of carrying out a fresh
KYC verification procedure.
In December, last
year (2013), SEBI had simplified investor account opening form by doing away
with details about income & occupation of the applicant for the purpose of
centralised KYC registration agency.
SEBI had said that
certain information about applicants such as gross annual income details,
occupation, permanent address proof and whether the applicant is a politically
exposed person are not required for the centralised KRAs.
PTI
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