Uniform Know Your Client (KYC) Requirements for the Securities Markets
Summary
SEBI mandates uniform Know Your Client (KYC) requirements for various securities market intermediaries to address inconsistencies in existing formats. The circular requires the use of a standardized KYC form for all new clients starting January 1, 2012, while allowing specific additional details via Part II of the account opening process. Depositories are directed to ensure compliance among their participants through internal audits and bye-law amendments. This section provides the KYC application form for non-individuals, requiring identity, address, and other financial details. It includes a declaration of truthfulness by the authorized signatory and instructions for filling out the form correctly. The text outlines acceptable proofs of identity and address, along with specific exemptions regarding PAN card requirements. This section mandates specific documentary requirements for various non-individual entities seeking to invest in the securities market. It details distinct compliance obligations for corporate bodies, partnership firms, trusts, HUFs, and other unincorporated associations. The provisions also outline documentation needs for banks, foreign institutional investors,
Text
the same KYC form and supporting documents shall also be used by all captioned SEBI registered intermediaries
The additional information (Part II) shall be prescribed by Depositories for their depository participants and by Association of Mutual Funds in India (AMFI) for all mutual funds
The intermediaries shall take necessary steps to implement this circular and ensure its full compliance in respect of all new clients from January 1, 2012
The Depositories are also directed to bring the provisions of this circular to the notice of their Depository Participants, make necessary amendments to the relevant bye-laws... and verify its compliance through internal audits and inspections
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992
Applicant must provide name, date/place of incorporation, commencement of business, PAN, registration number, and status (e.g., Private Limited Co, Trust).
Applicant must specify correspondence and registered addresses, contact details, and submit proof of address for both if different.
Applicant must disclose gross annual income range, net-worth, and details/promoters/directors including DIN/UID and PEP status.
Signatory declares details are true and correct, undertakes to inform of changes, and accepts liability for false or misleading information.
Self-attested copy of PAN card is mandatory for all clients, including Promoters/Partners/Karta/Trustees and whole time directors.
Copies submitted must be self-attested and accompanied by originals; if originals are not produced, copies must be attested by authorized entities.
For non-residents and foreign nationals, copy of passport/PIO Card/OCI Card and overseas address proof is mandatory.
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Source: SecMarx — Uniform Know Your Client (KYC) Requirements for the Securities Markets. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.