- Securities and Exchange Board of India (SEBI) notified a new set of norms to ease the process of Making Know Your Client (KYC) for investors on 20 March 2014.
- This will allow various market entities like brokers and Mutual Funds to get details from the centralized KYC agencies, instead of carrying out a fresh KYC verification procedure.
- This facility will allow the market intermediary to access the centralized KYC Registration Agency system in the case the client is already KYC complaint to verify and download the client’s details from the Agency's system.
About KRA
- With a view to bring uniformity in the KYC requirements for the securities markets, SEBI has initiated usage of uniform KYC by all SEBI registered intermediaries.
- In this regard SEBI has issued the SEBI {KYC (Know Your Client) Registration Agency (KRA)}, Regulations, 2011.
- Pursuant to the aforesaid regulation, M/s. DotEx International which is a wholly owned subsidiary of National Stock Exchange of India Limited (NSEIL), has been granted approval by SEBI to function as a KRA.
- KRA provides for centralization of the KYC records in the securities market. The client who is desirous of opening an account/trade/deal with the SEBI registered Intermediary shall submit the KYC details through the KYC Registration form and supporting documents.
- The Intermediary shall perform the initial KYC and upload the details on the system of the KYC Registration Agency (KRA).
- This KYC information can be accessed by all the SEBI Registered Intermediaries while dealing with the same client.
- As a result, once the client has done KYC with a SEBI registered intermediary, he need not undergo the same process again with another intermediary.
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