The Securities and Exchange Board of India on 6th April 2022, has notified additional guidelines in pursuance of amendment to SEBI KYC Registration Agency (KRA) Regulation 2011. The Guidelines provide that ‘KYC Registration Agency (KRA)’ shall continue to act as the 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
The KRAs shall independently validate records of those clients (existing as well as new) whose KYC has been completed using Aadhaar. The records of those clients who have completed KYC using non-Aadhaar OVD (officially valid document) shall be validated only upon receiving the Aadhaar Number.
During the process of validation, KRAs shall validate the following details:
- Aadhaar through Unique Identification Authority of India (UIDAI) authentication/verification mechanism.
- Mobile number and e-mail ID using OTP validation (only in cases where mobile number and e-mail ID provided by client are not seeded with Aadhaar)
- PAN using the Income Tax Database.
The validation of all KYC records (new and existing) shall commence from 1st July 2022.