On June 6, 2024, the Securities and Exchange Board of India (SEBI) issued a crucial circular aimed at refining the KYC (Know Your Customer) process within the securities market. The primary focus of the circular is on the upload of KYC information by KYC Registration Agencies (KRAs) to the Central KYC Records Registry (CKYCRR).
Following modifications are issued to streamline the KYC process:
- Intermediaries are mandated to continuously upload, download, and modify KYC information with proper authentication on the KRA systems. This is in accordance with the provisions of the SEBI KRA Regulations, 2011. This clause ensures that KYC data remains current and accurately reflects the latest client information.
- KRAs are now required to upload verified and validated KYC information onto the CKYCRR system within seven days of receiving the data from intermediaries. Alternatively, they must adhere to any other timeline notified under the PML (Prevention of Money Laundering) Rules. Furthermore, KRAs are instructed to integrate their systems with the CKYCRR and start the uploading process by August 1, 2024. This change aims to reduce delays and ensure that the central repository is promptly updated, enhancing the efficiency of the KYC process.
- KRAs must ensure that all existing KYC records, whether for legal entities or individual clients, are uploaded to the CKYCRR within six months from August 1, 2024. This clause underscores the importance of a complete and up-to-date KYC database, facilitating better compliance and regulatory oversight.
