The move is likely to benefit investors as well as distributors.
In its board meeting held today, SEBI board has approved a proposal for sharing KYC information with entities regulated by other financial regulators, moving a step forward in brining common KYC across all financial instruments.
SEBI has already introduced uniform KYC for all SEBI registered intermediaries. There are five KRAs - CDSL Ventures, NSDL Database Management, DotEx International, CAMS Investor Services and Karvy Data Management Services which share data among each other. Currently, only SEBI registered intermediaries are permitted to share data with each other.
“This would further facilitate the KYC process for the investors in the entire financial sector. This will not only reduce the paper-work and bring down cost of operations for the investors as well as for the intermediaries, but will also save the investors from the hassle of getting KYC done again by the intermediaries regulated by other financial sector regulators,” stated SEBI.
The centralized KYC system has KYC of 1.95 crore investors.
