CIRCULAR
SEBI/HO/MIRSD/DoP/P/CIR/2022/46 April 06, 2022
To,
SEBI Registered Intermediaries:
1. KYC Registration Agencies (KRAs),
2. Stock Brokers through Stock Exchanges,
3. Depository Participants (DPs) through Depositories,
4. Mutual Funds (MFs) and AMCs
5. Portfolio Managers (PMs)
6. Collective Investment Schemes (CIS),
7. Investment advisors
8. Registrar and Transfer Agents
9.Custodians
10.Alternate Investment Funds (AIFs)
11.Association of Mutual Funds in India (AMFI)
Dear Sir/Madam,
Subject: Guidelines in pursuance of amendment to SEBI KYC (Know Your
client) Registration Agency (KRA) Regulations, 2011
SEBI vide its circular MIRSD/Cir- 26 /2011 dated December 23,2011 had issued
guidelines to implement the SEBI {KYC Registration Agency (KRA)} Regulations,
2011. SEBI KRA Regulations, 2011, has been amended on January 28,2022 vide
a Gazette Notification No. SEBI/LAD-NRO/GN/2022/72 (Annexure A). With a view
to implement the regulations effectively, the following additional guidelines are
being issued:
1. KRAs shall continue to act as 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.
2. KRAs shall independently validate records of those clients (existing as well as
new) whose KYC has been completed using Aadhaar as an OVD. The records
of those clients who have completed KYC using non-Aadhaar OVD shall be
validated only upon receiving the Aadhaar Number.
3. During the process of validation, KRAs shall validate the following details:
a. Aadhaar through Unique Identification Authority of India (UIDAI)
authentication/verification mechanism.
b. 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)
c. PAN using the Income Tax Database.
4. The KRAs shall develop systems/mechanism, in consultation with SEBI and in
co-ordination with each other, and shall follow uniform internal guidelines
detailing aspects of identification of KYC attributes and procedures for KYC
validation.
5. The systems of Registered Intermediaries (RIs) and the KRAs shall be
integrated to facilitate seamless movement of KYC documents to and from the
RIs to the KRAs.
6. KRAs shall promptly inform the respective RIs of deficiency/inadequacy in
client’s KYC documents, if any, that is observed for validation.
7. On successful completion of KYC validation, a unique client identifier called
KRA identifier shall be assigned by KRA to the client and such KRA identifier
may be used by the client for opening of account with any other intermediary,
without repeating the KYC process.
8. The KYC records of new clients (who have used Aadhaar as an OVD) shall be
validated within 2 days of receipt of KYC records by KRAs.
9. KYC records of all existing clients (who have used Aadhaar as an OVD) shall
be validated within a period of 180 days from July 01, 2022.
10. KRA shall intimate the KRA identifier to the client within 2 working days of
receipt of KYC records by the KRAs by post or email and maintain the proof of
dispatch.
11. Clients whose KYC records are not found to be valid by KRA after the validation
process shall be allowed to transact in securities market only after their KYC is
validated.
12. In case of KYC based on non-Aadhaar OVD, the KRA shall only store such
records and the same would not be validated by KRAs unless Aadhaar number
is provided by the client.
13. The validation of all KYC records (new and existing) shall commence from July
01, 2022.
14. This circular is issued in exercise of powers conferred under Section 11(1) of
the Securities and Exchange Board of India Act, 1992 and Regulation 17 of the
SEBI (KYC (Know Your Client) Registration Agency) Regulations, 2011 to
protect the interests of investors in securities and to promote the development
of, and to regulate the securities markets.
Yours faithfully,
Narendra Rawat
General Manager
Market Intermediaries Regulation and Supervision Department
Tel. no.:022 2644 9383
email id: narendrar@sebi.gov.in