SEBI (Securities and Exchange Board of India) on 20 March 2014 notified a new set of norms to ease the process of Making Know-Your-Client (KYC) for investors. The newly issued set of norms will allow various market entities like brokers and Mutual Funds to get details from the centralized KYC agencies, instead of carrying out a fresh KYC verification procedure.
This facility will allow the market intermediary to access the centralized KYC Registration Agency system in the case the client is already KYC complaint to verify and download the client’s details from the Agency’s system.
About KRA (KYC Registration Agency)
SEBI issued the SEBI {KYC (Know Your Client) Registration Agency (KRA)}, Regulations, 2011 with a view to bring uniformity in the KYC requirements for the securities markets. For this it initiated usage of uniform KYC by all SEBI registered intermediaries. In pursuant of the abovementioned regulation, SEBI approved the NSDL Database Management Limited (NDML), which is a wholly owned subsidiary of National Securities Depository Ltd (NSDL), to function as a KRA.
Overall, the KRA is the institution that maintains the KYC details of the investor and the wholly-owned subsidiaries of stock exchanges and depositories are eligible to act as KRA.
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