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SEBI notifies rules to make KYC process easier

The objective is to make know your client process easier for investors.

March 20, 2014 1:55 IST | India Infoline News Service
Market regulator SEBI (Securities and Exchange Board of India) has notified a set of norms that allow various market entities such as brokers and mutual funds to get details from centralised KYC agencies instead of carrying out a new KYC procedure.
The objective is to make know your client process easier for investors.
"When the client approaches another intermediary subsequently, the intermediary shall verify and download the client's details from the system of KRA," SEBI said in a notification dated March 13.
This norm is subject to the "receipt of information on change in KYC details and status of the clients by the intermediary or when it comes to the knowledge of the intermediary, at any stage, the intermediary shall be responsible for uploading the updated information on the system of KRA and retaining the physical documents."
They shall come into force on the date of their publication in the Official Gazette, SEBI added.
KRA are institutions which maintain KYC details of investors. Wholly-owned subsidiaries of stock exchanges and depositories are eligible able to act as KRA.


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