Review of validation of KYC records by KRAs under Risk Management Framework
Summary
SEBI has simplified the Risk Management Framework for KYC record validation by Key Registration Agencies (KRAs) to ease client transactions. KRAs are now required to verify only PAN, Name, and Address within two days of receiving records, with validation contingent on official database checks. Intermediaries must implement necessary technical system changes by May 31, 2024.
Text
The provisions of the Master Circular dated October 12, 2023 have been reviewed and it has been decided to simplify the risk management framework based on stakeholder feedback.
The KRAs shall verify the following attributes of records of all clients within 2 days of receipt of KYC records: a. Permanent Account Number (PAN), b. Name, c. Address.
The records of those clients in respect of which all attributes mentioned in para 96 / 97 above are verified by KRAs with official databases... and PAN-Aadhaar linkage has also been verified... shall be considered as Validated Records.
The Exchanges / Depositories / concerned intermediaries shall complete the necessary technical change in their systems by May 31, 2024.
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.
Source: SecMarx — Review of validation of KYC records by KRAs under Risk Management Framework. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.