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SEBI has given one-month relaxation to KYC registration agencies (KRAs) to validate all KYC details of investors including mutual funds. This activity will now commence from August 1, 2022 instead of July 1, 2022.
Earlier, SEBI has asked KRAs to independently validate clients where investors have used Aadhaar as an officially valid document (OVD) within three months. In absence of Aadhaar, KRAs will have to store such records. This data cannot be verified until investors provide their Aadhaar.
The validation process will require KRAs to authenticate the Aadhaar of every investor through the UIDAI and the PAN using income tax database. Mobile number and email validation will also be validated.
Further, SEBI has directed KRAs to generate an ID for every investor whose validation is completed successfully. This ID, the regulator said, can be used by investors to start new investments without going through the KYC process again.
"On successful completion of KYC validation, a unique client identifier called KRA identifier shall be assigned by KRA to the client and such KRA identifier may be used by the client for opening of account with any other intermediary, without repeating the KYC process," SEBI said in a circular.
