Rollout of uniform format of KYC norms soon, says SEBI

December 17th, 2011 - 11:15 pm ICT by IANS  

Kolkata, Dec 17 (IANS) Capital market regulator, Securities and Exchange Board of India (SEBI), in the final stages of fine-tuning the Know Your Client (KYC) regulations to make them more simple and investor-friendly, is working closely with stock exchanges and other intermediaries to rollout uniform norms soon, an official said Saturday.

The market regulator also said investors would not have to bear any burden of charges for maintaining their data with KYC Registration Agency (KRA) as it is likely to be borne by intermediaries.

“The KRA has been notified and the operational guidelines shall be issued soon. We are working closely with stock exchanges and other intermediaries on the rollout of the new simplified norms,” SEBI executive director P.K. Nagpal told media persons on the sidelines of a Financial Market Conclave, organised by industry body CII here.

According to the current KYC norms, investors, who intend to open accounts with different intermediaries for the purpose of trading or investment in the securities market, have to undergo the process of filing KYC more than once.

But when the new format of KYC norms will be implemented, any one intermediary will perform the initial KYC of its clients and upload the details on the “centralised” system of the KRA.

If the investor intends to open account with another intermediary, the intermediary concerned can verify and download the client’s details from the system of the KRA. It will help investors saving times while making investments through a single or multiple intermediaries.

Nagpal also said investors would not have to bear any maintenance cost for storing their KYC data online.

“I do not think there will be any burden of charges on investors for maintaining their KYC data as it is likely to be borne by intermediaries,” he said.

In case of demat account, currently an investor has to pay a certain annual maintenance and usage charges for their demat account with the two depositories, namely National Securities Depository (NSDL) and Central Depository Services (CDSL).

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