Securities and Exchange Board of India (SEBI) issued Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/79 on June 6, 2024. This circular is addressed to various entities, including intermediaries registered with SEBI, stock exchanges, the Association of Mutual Funds in India (AMFI), the Association of Portfolio Managers in India (APMI), and BSE Administration & Supervision Ltd. (BASL). The subject of the circular is the uploading of Know Your Customer (KYC) information by KYC Registration Agencies (KRAs) to the Central KYC Records Registry (CKYCRR).
KYC records of clients are typically uploaded to the systems of KRAs by intermediaries who perform client due diligence according to the SEBI KRA Regulations, 2011. Furthermore, intermediaries upload KYC information onto CKYCRR as per SEBI’s master circular SEBI/HO/MIRSD/SECFATF/P/CIR/2023/169 dated October 12, 2023, which outlines KYC norms in the securities market.
Based on feedback from stakeholders in the securities market and to facilitate ease of doing business, certain clauses of the SEBI master circular on KYC norms have been modified:
- Insertion of Para 114 (a): Registered intermediaries are required to continue uploading, downloading, or modifying KYC information with proper authentication on KRA systems, as per the provisions of SEBI KRA Regulations, 2011.
- Modification of Para 115: KRAs are mandated to upload verified or validated KYC information onto the CKYCRR system within 7 days of receiving it from intermediaries or within any other timeline specified under Prevention of Money Laundering (PML) Rules. KRAs must integrate their systems with CKYCRR and commence uploading KYC records on CKYCRR from August 1, 2024.
- Modification of Para 116: KRAs must ensure that existing KYC records of legal entities and individual clients are uploaded onto CKYCRR within 6 months from August 1, 2024.
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/79 Dated: June 06, 2024
To,
1. All intermediaries registered with SEBI under Section 12 of the Securities and Exchange Board of India Act, 1992
2. Stock Exchanges
3. Association of Mutual Funds in India (AMFI)
4. Association of Portfolio Managers in India (APMI)
5. BSE Administration & Supervision Ltd. (BASL)
Dear Sir/Madam,
Subject: Uploading of KYC information by KYC Registration Agencies (KRAs) to Central KYC Records Registry (CKYCRR)
1. The KYC record of a client is uploaded on the system of KRAs by the intermediaries performing client due diligence as per the provisions of SEBI KRA Regulations, 2011. Additionally, the KYC information is uploaded on CKYCRR by the intermediaries in terms of SEBI master circular SEBI/HO/MIRSD/SECFATF/P/ CIR/2023/169 dated Oct 12, 2023 on KYC norms in securities market.
2. In this regard, based on the feedback received from stakeholders in securities market and to enable ease of doing business, the following clauses of the SEBI master circular on KYC norms stand modified.
2.1. Para 114 (a) shall be inserted as under:
Registered intermediaries shall continue to upload/ download/ modify the KYC information with proper authentication on the systems of KRA, as per the provisions of SEBI KRA Regulations, 2011.
2.2. Para 115 of the master circular shall read as under:
KRAs shall upload the verified/ validated KYC information onto the system of CKYCRR within 7 days of receiving the same from intermediaries or any other timeline as notified under PML Rules. The KRAs shall integrate their systems with CKYCRR and commence the uploading of KYC records on CKYCRR from August 01, 2024.
2.3. Para 116 of the master circular shall read as under :
KRAs shall ensure that existing KYC records of legal entities and of individual clients are uploaded on to CKYCRR within a period of 6 months from August 01, 2024.
3. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 17 of the SEBI{KYC (Know Your Client) Registration Agency}Regulations, 2011 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
4. This circular is available atsebi.gov.in under the link “Legal — Circulars”. Yours faithfully,
Sapna Sinha
Deputy General Manager
Phone No. 022-2644 9748
Email id: sapnas@sebi.gov.in
