SEBI notifies rules for KYC Registration agencies

Securities exchange board of India has issued a notification which permits the KYC registration agencies (KRAs) to perform verification of KYC records independently, which have been uploaded to their by the registered intermediary. The market regulator has asked the KRAs to upkeep an audit trail with respect to modifications/upload/download of their KYC clients.

Intermediaries need to develop systems for smooth and seamless transfer of sensitive KYC data back and forth from the intermediary to the KRA. If the KRA has a change in the controlling interest, then a prior approval of the SEBI is mandatory.