Know Your Client Requirements
Summary
This circular amends the Account Opening Form (AOF) by shifting certain information from Part I to Part II to simplify KYC norms. It mandates that KRA systems capture only revised Part I data, allowing a six-month transition period for intermediaries to update pre-printed forms. The directive is issued under Section 11(1) of the SEBI Act to protect investors and regulate securities markets.
Text
A standard Account Opening Form (AOF) has been prescribed which is divided in 2 parts - Part I contains the basic KYC details of the investor used by all SEBI registered intermediaries and Part II captures additional information specific to the area of activity of the intermediary. Further, with the centralised KRA system in place, the client has to undertake the KYC process i.e. Part I of the AOF only once which means he need not undergo the KYC process again when he approaches different intermediaries in securities markets.
It has now been decided in consultation with various market participants to shift certain information in Section C of Part I to Part II of the AOF (for both individuals and non-individuals). Revised Part I of AOF is enclosed. Part II shall be modified by the intermediary accordingly.
Information as contained in revised Part I of AOF shall only be required to be captured in the systems of KRAs from the date of this circular. However, in view of existing pre-printed forms available with the intermediaries, a time period of six months, effective from the date of this circular, is provided to bring about the aforementioned modifications in the KYC form.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Know Your Client Requirements. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.