Sebi clears system to facilitate single KYC for all trades
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Investors will no longer need to go through the know-your-customer (KYC) scrutiny process multiple times to invest in stock markets. This process will be done through a single knowyour-customer clearance window soon, Sebi said on Friday.
At present, if an investor intends to open accounts with different intemediaries such as a stock broker or mutual fund for the purpose of trading or investment in the securities market, he has to undergo the process of KYC several times.
However, to avoid duplication of the verification process with every intermediary, the regulator has put in place a mechanism for centralisation of the KYC records in the capital market.
Awholly-owned subsidiary of a stock exchange with a nation-wide network of trading terminals, a depository or a self-regulatory organisation, can seek approval for providing this service.
However, the record-keeping agency should have a net worth of at least Rs 25 crore on a continuous basis, Sebi said.
"An intermediary shall perform the initial KYC of its clients and upload the details on the system of the KYC Registration Agency.
When the client approaches another intermediary, the intermediary can verify and download the client's details from the system of the KRA.
As a result, once the client has done KYC with a Sebi-registered intermediary, he need not undergo the same process again with another intermediary," the regulator said. (Economic Times)
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