MF News Existing KYC records of your clients to be verified again: SEBI

Existing KYC records of your clients to be verified again: SEBI

KRAs will complete re-verification by December 2021.

Nishant Patnaik Jan 14, 2021

In a draft circular, SEBI has proposed re-verification of existing KYC records of investors to ensure correctness of all KYC records.

With this, KYC Registration Agencies (KRAs) will re-verify KYC documents of all your clients till December 2021.

In a draft circular, SEBI said, “Since the KRAs shall be responsible for KYC of the clients and they shall continue to be the repository of KYC data, the existing KYC records of clients submitted by registered intermediaries shall be re-verified by KRAs and KRAs shall ensure the correctness of the KYC records maintained by it. KRA shall ensure correctness of all KYC records maintained by it by Dec 2021 after due verification.”

Here are other key proposals to the KYC norms:

Account opening and KYC will be separated in securities markets
With this, investors will have an option to complete their KYC directly with the KYC registration agencies (KRAs). Such investors will have to quote KYC acknowledgement number or PAN details whenever they invest with AMCs, stock brokers and so on
Mutual fund investors can complete their KYC directly on RTA website like CAMS and KFintech
AMCs can work as a frontend of KRA for KYC process. That means, AMCs, investment advisors and stock brokers can facilitate KYC by tying up with KRAs
KRAs will have to put in place systems and processes to do In Person Verification (IPV) digitally
KYC will be submitted only after verification of documents, PAN, mobile number, email id and bank account
KYC process will be available both physical and online
Investor Protection Fund (IPF) of SEBI will bear the cost of KYC, if investors choose to complete it directly with KRAs

You can submit your feedback to SEBI at narendrar@sebi.gov.in and sushmau@sebi.gov.in by February 15. 2021.

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13 Comments

Alok9648939091 · 3 years ago `

The three regulatory bodies , ie SEBI + IRDA + RBI ( for banks+government +corporate , investment products ) should make it feasible that this KYC / KRA is acceptable to all the issuers of financial instruments . With the objective that the investors do not have to do the same kyc filling whenever they invest. ( ONE NATION , ONE KYC , of ONE INVESTOR ) . comments are solicited on (9648939091) .

Suresh nair · 3 years ago `

Well said....Now also Karvy do not share signature details with CAMS. No single platform for all mutual funds...FTMF is all together different animal..Any error in CKRA data cannot be corrected by individual investor...they have to take help of any MF AMC..India will never improve?...retarded people are formulating these norms.

ASHOK BASAK · 3 years ago `

WE WANT "ONE NATION ONE KYC"

Jayesh J Pattani · 3 years ago `

In first budget speech then Finance minister Late Mr Arun Jately announced one KRA system for all regulators soon, but, didn't happen, let us hope government will see the matter

sanjoy baul · 3 years ago `

Minesh Mehta · 3 years ago `

Hay God, We don't understand that those who has completed their KYC process was already with due verification of documents at the respective authority appointed by the regulator. It seems like they take decision in hurry and than they found that the authority or process was incorrect. Please respect and trust your agencies.

We urge the regulator to take enough time to think and design the process before you just come out in hurry with your order and later on you feel there was a loop hole and again you will ask for something different. End of the day it's investor who suffers and harassed.

Earlier also there was something like chargeable mapin card (Laminated Card) was issued with bio matrix and within no time it was thrown in to dustbin.

Yamanappa Ogennavar · 3 years ago `

KYC is the biggest issue for investors and distributors. We should provide easy mechanism to get KYC done. One nation One KYC should be the norm. All RTA's should provide KYC option directly to the investors

Chandan Thakur · 3 years ago `

ONE NATION N ONE KYC FOR ALL FINANCIAL PRODUCTS AS WELL AS OTHER SIDE WHERE KYC REQUIRED.

NRUSINGHA NARAYAN PATRO · 3 years ago `

ONE NATION ONE KYC FOR ONE INVESTOR IS MEANT FOR MF & SHARE TRADING RULES IMPLEMENTED DEPENDING UPON THE TIME OF INVESTMENT.
BEFORE IMPLEMENTATION OF KYC, INVESTMENTS MADE BY MFDS BUT NOW SEBI STOPS THE TRIAL COMMISSION OF IFAS ON THAT OLD INVESTMENTS, WHICH IS STILL KYC NOT UPDATED.
SEBI SHOULD ORDER TO AMCS TO REDEM AUTOMATICALLY DUE TO UNUPDATION OF KYC OF OLD INVESTMENTS.
HERE SEBI PUNISHED THE OLD AGE IFAS THOSE WHO WERE DID THE BUSINESS FOR AMCS & UNABLE TO UPDATE THEMSELVES FOR KYC UPDATION OF OLD INVESTMENTS, NOW LOSING TRIAL COMMISSIONS.
MY REQUEST TO SEBI PLEASE IMPLEMENT THE SAME THING THROUGH IRDA TO ALL ULIP PRODUCTS MARKETED BY ALL INSURANCE COMPANY. THERE IS NO INVESTOR S PROTECTION ACT FOR POLICY HOLDERS, IF THERE IS NO SEPARATE STOCK MARKET FOR INVESTMENTS MADE BY INSURANCE COMPANIES.
SELLING OF ULIP PRODUCTS THERE MUST BE AN AMFI CERTIFICATE & ARN.

ANURAG DUREHA · 3 years ago `

While SEBI's initiative is appreciated, it must also be ensured that there is no disconnect on KYC related matters between various agencies, viz. DPs, RTAs, AMCs and KRA. It has been observed that KYC matters are presently handled very loosely by these agencies and the blame is put on the investors or distributors for not having completed KYC process, though the investors had already done that while opening the demat account with the DPs. Investors receive mails from AMCs and RTAs for completing KYC process though the same had already been done with their DP. Later on, it is found that the KYC documents were not handled properly (casually) at AMC/RTA levels.
SEBI should have a better contorl on KYC issues on AMCs, RTAs and KRA. There should not be any situation where each of them ask for KYC document separately.

Kandarp C Bhatt · 3 years ago `

At every 1 or 2 years interval SEBI/ IRDA /AMC are demanding something again and again, that we have done earlier. Customer becomes tired and suspicious on us about this repeated process.
TYC ( Trust Your Customer ) instead of
KYC.

Ramkumar H Barchha · 3 years ago `

Why cannot SEBI allow Bank KYC as a final KYC which should be a valid KYC for all agencies. My bank account should be my kyc number. Every two years repetition of kyc is a waste of resources and time. AMC does not permit any financial transactions if kyc is incomplete than why again everyone should suffer. Please also atleast have a dialogue with concerned stake holders before any such unilateral decisions.

ANURAG DUREHA · 3 years ago

Forget about Bank KYC, even the passbook or bank statement now is an invalid document as address proof. Just imagine how many can provide Passport, Voter ID or Driving License as address proof (these are the 3 documents prescribed by CERSAI) ?...and hell breaks if a person has just shifted to a new address. Get a new Passport or Voter ID or Driving License ? Am not talking about NREGA ID...how many will have it and how many will really benefit from it ?

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