Independently validate KYC data from July 1: Sebi to KRAs

The Securities and Exchange Board of India (Sebi) on Wednesday issued recent pointers for KYC Registration Agencies (KRAs) stipulating that such businesses should independently validate KYC (know your buyer) data of all purchasers from July 1.

Under the notified guidelines, such businesses should preserve an audit path of the add, modification or obtain with respect to KYC data of purchasers.

In January, Sebi notified new norms to make KRAs liable for finishing up impartial validation of the KYC data uploaded onto their system by Registered Intermediaries (RIs). KRAs registered with the Sebi embrace CSDL Ventures Ltd, DotEx International Ltd, Karvy Data Management Services, NDML (NSDL Database Management Ltd) and CAMS Investor Services.

Sebi mentioned KRAs will independently validate data of these purchasers (current in addition to new) whose KYC has been accomplished utilizing Aadhaar as an Officially Valid Document (OVD).

The data of these purchasers who’ve accomplished KYC utilizing non-Aadhaar OVD will probably be validated solely upon receiving the Aadhaar quantity. “The validation of all KYC records (new and existing) shall commence from July 1, 2022,” Sebi mentioned.