Wednesday, February 8, 2012

NSDL Establishes KYC registration agency in Mumbai

 

NSDL Establishes KYC registration agency in Mumbai 

To avoid duplication of KYC process, SEBI has prescribed a mechanism for centralization of the KYC records in the securities market
NSDL Database Management Ltd (NDML), a wholly owned subsidiary of National Securities Depository Ltd (NSDL) has established KYC Registration Agency (KRA) pursuant to SEBI KYC Registration Regulations, 2011.

To avoid duplication of KYC process with every intermediary, SEBI has prescribed a mechanism for centralization of the KYC records in the securities market. Establishing KYC Registration Agencies is an important milestone in the development of Indian capital markets as the investor community is expected to greatly benefit from this.  

KYC Registration Agency will maintain KYC records of Investors in physical and electronic form. Earlier, if a client intended to open accounts with different SEBI registered intermediaries such as stock brokers, depository participants etc. for the purpose of trading/investment in the securities market, he had to repeat KYC process with each intermediary.

An intermediary shall perform the initial KYC of its clients and upload the details on the KRA system. When the client approaches another intermediary, that intermediary can verify and download the client's details from the system of the KRA. As a result, once the client has undergone KYC process with a SEBI registered intermediary, he need not undergo the same process again with another intermediary.

In case of change of KYC details e.g. change of address etc, the investor needs to inform SEBI registered intermediary where he is registered as a client. The intermediary will update the KYC details in KRA system which in turn will communicate these changes to all the intermediaries where this investor is registered as a client.


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