(M.C)
Capital markets regulator Sebi on Wednesday issued fresh guidelines for KYC Registration Agencies (KRAs) whereby such agencies will have to independently validate KYC records of all clients from July 1. The move comes after Sebi, in January, notified new norms to make KRAs responsible for carrying out independent validation of the KYC records uploaded onto their system by Registered Intermediaries (RIs). Under the notified rules, such agencies will have to maintain an audit trail of the upload/modification/download with respect to KYC records of clients.
In a circular, Sebi said KRAs will independently validate records of those clients (existing as well as new) whose KYC has been completed using Aadhaar as an Officially Valid Document (OVD). The records of those clients who have completed KYC using non-Aadhaar OVD will be validated only upon receiving the Aadhaar number. During the process of validation, KRAs will validate details pertaining to Aadhaar through Unique Identification Authority of India (UIDAI) authentication, PAN using the Income Tax database and mobile number and e-mail ID using one-time password validation.
