Mutual fund distributors can now submit scanned documents to KRAs and retain physical documents with them.
Market regulator SEBI has done away with filing physical documents to KYC Registration Agencies (KRAs) by amending its KRA regulations.
Mutual fund distributors can now upload the KYC details on the systems of KRAS and furnish the scanned images of the KYC documents to the KRA and retain the physical documents with them.
However, mutual fund distributors will have to submit the physical KYC documents as and when demanded by KRAs.
The move is likely to bring operational ease to all intermediaries. Investors can check their KYC status on the websites of KRAs.
SEBI has granted registrations to five KRAs so far. The KRAs are supposed to maintain and share client data among themselves.
MF distributors are still waiting for all the KRAs to establish interconnectivity among themselves as KYC done with one KRA is not reflected in the systems of another KRA.
