SEBI revises KYC norms to ease a/c opening process

SEBI had simplified the account opening process for investors in 2011.

January 02, 2014 10:25 IST | India Infoline News Service
Capital market regulator Securities and Exchange Board of India (SEBI) has re-worked know your client (KYC) requirements for both individuals and non-individuals to avoid repeated modifications in the KYC registration agency (KRA) system.

A standard Account Opening Form (AOF) has been prescribed which is divided in 2 parts - Part I contains the basic KYC details of the investor used by all SEBI registered intermediaries and Part II captures additional information specific to the area of activity of the intermediary, SEBI said in a circular on 26th December.

Further, with the centralised KRA system in place, the client has to undertake the KYC process i.e. Part I of the AOF only once which means he need not undergo the KYC process again when he approaches different intermediaries in securities markets.
“Certain information provided by the clients change over a period of time such as residence address and telephone number, shifting such information to the area of activity of the intermediary will help avoid repeated modifications in the KRA system and will facilitate in making the KYC uniform for the entire financial sector,” SEBI said.

“It has now been decided in consultation with various market participants to shift certain information in Section C of Part I to Part II of the AOF (for both individuals and non-individuals),” Sebi circular said.

Information as contained in revised Part I of AOF will only be required to be captured in the systems of KRAs henceforth, SEBI circular said.

“However, in view of existing pre-printed forms available with the intermediaries, a time period of six months, effective from the date of this circular, is provided to bring about the aforementioned modifications in the KYC form,” the circular added.

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