Securities and Exchange Board of India (SEBI) on 11 August 2014 issued SEBI KYC (Know-your-Client) Registration Agency (Second Amendment) Regulations, 2014. SEBI by exercising the power conferred to it by Section 30 of the SEBI Act, 1992 amended the SEBI KYC (Know-your-Client) Registration Agency Regulations 2011.
The issued regulations came into force on the date of publication in official gazette. The inserted regulations for sharing of KYC information in financial sector includes
16(A). 1 – The entities regulated by other regulators in the financial sector specified by the Board from time to time, may access the system of KRA for undertaking KYC of their clients who engage them for financial services
2 – The provisions of the regulations shall, Mutatis Mutandis, apply to the entities regulated by other regulators specified in sub-regulation (1)
3 – The system of KRA may be connected with any central KYC registry authorised by the central government for the purpose of collating and sharing of the KYC information in financial sector.
This notification would allow sharing of KYC details with entities regulated by other financial sector watchdogs. These norms were issued to facilitate a common KYC system for the entire financial sector.
Earlier, the facility of sharing of KYC information was available only among SEBI-registered intermediaries. At present the KYC information of nearly 2 crore investors in the capital markets is available on centralised KYC registration, KRA system of the SEBI.
However, earlier SEBI had said that a common KYC process for the entire financial sector would help in reducing the paper-work and bring down cost of operations for the investors as well as for the intermediaries.
Chairman of SEBI – UK Sinha
When: 11 August 2014