Guidelines in pursuance of the SEBI KYC Registration Agency (KRA) Regulations, 2011 and for In Person Verification (IPV)
Summary
This SEBI circular issues guidelines for intermediaries and KYC Registration Agencies (KRAs) to implement the KRA Regulations, 2011. It mandates specific procedures for uploading KYC data, maintaining records, and conducting In-Person Verification (IPV). The document also outlines applicability dates, compliance monitoring responsibilities, and the legal basis under Section 11(1) of the SEBI Act.
Text
After doing the initial KYC of the new clients, the intermediary shall forthwith upload the KYC information on the system of the KRA and send the KYC documents... to the KRA within 10 working days from the date of execution of documents by the client and maintain the proof of dispatch.
In case a client’s KYC documents sent by the intermediary to KRA are not complete, the KRA shall inform the same to the intermediary who shall forward the required information / documents promptly to KRA.
For existing clients, the KYC data may be uploaded by the intermediary provided they are in conformity with details sought in the uniform KYC form... While uploading these clients’ data the intermediary shall ensure that there is no duplication of data in the KRA system.
The intermediary shall carry out KYC when the client chooses to trade/ invest / deal through it.
The intermediaries shall maintain electronic records of KYCs of clients and keeping physical records would not be necessary.
The intermediary shall promptly provide KYC related information to KRA, as and when required.
The intermediary shall have adequate internal controls to ensure the security / authenticity of data uploaded by it.
KRA system shall provide KYC information in data and image form to the intermediary.
KRA shall send a letter to the client within 10 working days of the receipt of the initial/updated KYC documents from intermediary, confirming the details thereof and maintain the proof of dispatch.
KRA(s) shall develop systems, in co-ordination with each other, to prevent duplication of entry of KYC details of a client and to ensure uniformity in formats of uploading / modification / downloading of KYC data by the intermediary.
KRA shall maintain an audit trail of the upload / modifications / downloads made in the KYC data, by the intermediary in its system.
KRA shall ensure that a comprehensive audit of its systems, controls, procedures, safeguards and security of information and documents is carried out annually by an independent auditor... The KRA shall send the Action Taken Report to SEBI within 3 months.
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Source: SecMarx — Guidelines in pursuance of the SEBI KYC Registration Agency (KRA) Regulations, 2011 and for In Person Verification (IPV). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.