Sebi Removes Physical Filing Of KYC Documents

Tuesday, March 26, 2013
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Mumbai: To streamline the process of know-your-customer (KYC) procedures, market regulator Sebi has done away with the submission of physical documents by investors to the KYC registration agencies (KRAs) in favour of the electronic format only.

The intermediaries, including mutual funds, would need to submit scanned copies of investor documents to the KRAs and retain the physical documents with themselves.

However, the physical documents will need to be submitted, whenever KRAs demand them.

So far, KRAs which are responsible for maintaining KYC records across all Sebi-regulated entities were required to maintain the original KYC documents, both in physical as well as electronic formats.

To minimise the physical paperwork, Sebi has now amended its KRA regulations, allowing the market intermediaries to keep the original investor documents in physical form with them and submit only the scanned copies to the KRAs.

The intermediary shall perform the initial KYC due diligence of the client, upload the KYC information with proper authentication on the system of the KRA, furnish the scanned images of the KYC documents to the KRA, and retain the physical KYC documents, Sebi said.

Even in cases of any change in investor KYC details, the market intermediaries would retain the updated documents in physical form with themselves.

As per the new norms, all market intermediaries and agents (RTI and STA) acting on behalf of mutual funds would also have to submit only scanned KYC documents to KRAs.

However, the intermediaries and mutual funds would have to furnish the physical KYC documents or authenticated copies, whenever desired by the KRAs, Sebi said.

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Source: PTI
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