Independently validate KYC records from July 1: Sebi to KRAs

The Securities and Exchange Board of India (Sebi) on Wednesday issued fresh guidelines for KYC Registration Agencies (KRAs) stipulating that such agencies will have to independently validate KYC (know your customer) records of all clients from July 1.

Under the notified rules, such agencies will have to maintain an audit trail of the upload, modification or download with respect to KYC records of clients.

In January, Sebi notified new norms to make KRAs responsible for carrying out independent validation of the KYC records uploaded onto their system by Registered Intermediaries (RIs). KRAs registered with the Sebi include CSDL Ventures Ltd, DotEx International Ltd, Karvy Data Management Services, NDML (NSDL Database Management Ltd) and CAMS Investor Services.

Sebi said KRAs will independently validate records of those clients (existing as well as new) whose KYC has been completed using Aadhaar as an Officially Valid Document (OVD).

The records of those clients who have completed KYC using non-Aadhaar OVD will be validated only upon receiving the Aadhaar number. “The validation of all KYC records (new and existing) shall commence from July 1, 2022,” Sebi said.

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