Sebi Allows IFSCA-Regulated Entities To Access KYC Records

New Delhi: Markets regulator Sebi on Thursday allowed entities regulated by the IFSCA to access the systems of registered KYC registration agencies, facilitating seamless sharing of client information for financial services.

The markets watchdog said the step will enable interoperability and facilitate sharing of information between Sebi-registered KRAs and entities regulated by IFSCA.

Under the move, the International Financial Services Centres Authority (IFSCA) regulated entities can access KYC Registration Agencies (KRAs) records for carrying out KYC of clients who engage them for financial services, Sebi said.

A KYC Registration Agency (KRA) is an agency that maintains investors’ KYC (Know Your Customer) records. KYC is the process through which financial institutions verify the identity and other required details of their clients.

The Securities and Exchange Board of India (Sebi) has included IFSCA-regulated entities under Regulation 16A(1) of the KYC Registration Agency Regulations, 2011, which permits entities regulated by financial-sector regulators specified by Sebi to access the KRA system for conducting KYC.

The regulator said all such entities accessing the KRA system will be subject to the applicable provisions of the KRA Regulations and Sebi’s master circular on KYC norms for the securities market, as amended from time to time.

In case of clients registered as Foreign Portfolio Investors (FPIs), the entities will also have to comply with Sebi’s data-security guidelines for FPIs, designated depository participants and eligible foreign investors, it added.

The provisions of this circular will come into force with immediate effect, according to Sebi.

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