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TMI BlogReview of validation of KYC records by KRAs under Risk Management FrameworkX X X X Extracts X X X X X X X X Extracts X X X X ..... k management framework, the KRAs shall verify the following attributes of records of all clients within 2 days of receipt of KYC records: a. Permanent Account Number (PAN) b. Name c. Address 2.2. Para 100 shall be read as under: The records of those clients in respect of which all attributes mentioned in para 96 / 97 above are verified by KRAs with official databases (such as Income Tax Department database on PAN, Aadhaar XML / Digilocker / M- Aadhaar) and PAN-Aadhaar linkage has also been verified as referred to in Rule 114 AAA of the Income Tax Rules, 1962 shall be considered as Validated Records. 3. The Exchanges / Depositories / concerned intermediaries shall complete the necessary technical change in their systems by May 31, 2024. 4. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 17 of the SEBI{KYC (Know Your Client) Registration Agency}Regulations, 2011 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. 5. This circular is available at www.sebi.gov.in under the link Legal --- Circulars . Yours faithfull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation? Yes, client needs to furnish additional KYC Information as required under the law. 7. What is Part I and Part II of the account opening form (AOF)? Client needs to fill the account opening form at the time of commencement of an account based relationship. Part I of the AOF is the KYC form in which the basic details about the client is captured. Part II of the form pertains to the additional KYC information as may be sought separately by the financial intermediary such as asset management company, stock broker, depository participant opening the client s account. 8. Is there a uniform KYC form to be used for account opening? Yes. KYC templates provided by Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) for individuals and for legal entities are used for capturing the KYC information. The CKYCR templates - Individual and Legal Entity provided by CERSAI is available at https://www.ckycindia.in/ckyc/?r=download. 9. What are the different modes of KYC verification available to clients? Clients can complete their KYC verification through physical mode / online or app based mode. 10. Is Permanent Account Number (PAN) card considered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments (or their equivalent e-documents thereof) are acceptable for the limited purpose of proof of address, provided that the client submits updated officially valid document (or their equivalent e-documents thereof) with current address within a period of three months of submitting the following documents: i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill); ii. property or municipal tax receipt; iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address; iv. letter of allotment of accommodation from employer issued by state or central government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation. 18. Is the client required to update KYC records? Yes. Clients are required to update KYC records as and when there is any change / modification in the KYC information submitted. 19. Is the client required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, where offline verification cannot be carried out along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the registered intermediary as per the provisions contained in the Prevention of Money Laundering Act. 27. How does the digitized KYC process work? In the digital KYC process, the investor s photograph, acceptance of officially valid document through technologically assisted facilities like DIgilocker, online / offline / biometric Aadhaar, video capturing in live environment, time stamping, geolocation tagging to ensure physical location being in India and liveliness check is carried out. In the online KYC mode, the documents along with the wet / cropped signature are e-signed. 28. What is the online e-Sign Electronic Signature Service and whether it is a legally valid signature? e-Sign Electronic Signature Service is an innovative initiative by allowing easy, efficient, and secure signing of electronic documents by authenticating signer using Aadhaar e-KYC services. With this service, any Aadhaar holder can digitally sign an electronic document without having to obtain a physical digital signature dongle. The El ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g (Maintenance of Records) Rules, 2005. 38. What is KRA? KRA (Know Your Client) Registration Agency is a SEBI registered intermediary to maintain KYC records of clients and provides centralization of the KYC records in the securities market. The intermediary performs the initial KYC of the client and uploads the details on the system of the KRA. 39. What is KRA validation? KRA validation refers to the process of verifying and validating the KYC attributes of KYC records stored in the KRA. 40. What are Validated Records in the risk management framework at KRAs? In the risk management framework, the KRAs are required to verify KYC attributes like PAN, Name, Address, client s mobile number and email id of the client s KYC records uploaded on their system with official databases such as Income Tax Department database on PAN, Aadhaar XML / Digilocker / M-Aadhaar). The records verified with official databases and where PAN-Aadhaar linkage has also been verified are considered as Validated Records. 41. What is portability of KYC records? The clients whose KYC records are validated by the KRAs need not undergo the KYC process again when the client approaches another intermediary in securit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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