Markets regulator Securities and Exchange Board of India (Sebi) on Tuesday said it has decided to relax Know Your Customer (KYC) norms to simplify its risk management framework. The markets regulator has issued an updated notification regarding the circular dated October 12.
“The Sebi circular dated October 12, 2023 has prescribed the KRA Risk Management Framework ((KYC Registration Agencies) which lists the attributes for verification by KRA. Based on the feedback received from stakeholders in the securities market and for ease of transaction by customers , the provisions of the Master Circular of October 12, 2023 were reviewed and a decision was made to simplify the risk management framework,” the market surveillance authority announced in an official statement.
In a revised circular, Sebi said KRAs will verify the customer’s constant account number (PAN), name and address within two days of receiving the KYC records.
He also added that customer details verified by KRA against official databases (such as the Income Tax Department’s PAN database, Aadhaar XML, Digilocker or M-Aadhaar) will be considered as “validated details”.
Sebi also said that concerned stock exchanges, depositories and intermediaries should complete necessary technical changes in their systems by May 31, 2024.
Last year, on October 12, the capital markets regulator published a circular on KYC rules for investors to enable users to access all applicable circulars and guidelines at one place.
“This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development and regulation of the securities market,” it said. circular.
Posted: May 14, 2024 20:59 EST
