**Summary:**
This circular, reference number SEBI/HOM/MIRSD/SEC/5/CIR/2022/107, issued by the Securities and Exchange Board of India (SEBI) on July 27, 2022, addresses the implementation of guidelines related to amendments to the SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011. It is directed to all SEBI registered intermediaries including KYC Registration Agencies (KRAs), Stock Brokers, Depository Participants (DPs), Mutual Funds (MFs) and AMCs, Portfolio Managers (PMs), Collective Investment Schemes (CIS), Investment advisors, Registrar and Transfer Agents, Custodians, and Alternate Investment Funds (AIFs).
The circular pertains specifically to clauses 9 and 13 of SEBI circular number SEBI/HOM/MIRSD/DOP/CIR/2022/46 dated April 06, 2022. These clauses were initially slated to take effect on July 01, 2022, then extended to August 01, 2022, via circular number SEBI/HOM/MIRSD/DOPP/CIR/2022/89 dated June 24, 2022.
Considering requests from KRAs for further extension, SEBI has decided that:
* KYC records of all existing clients who have used Aadhaar as an Officially Valid Document (OVD) must be validated within 180 days from November 01, 2022.
* The validation of all KYC records, both new and existing, shall commence from November 01, 2022.
This circular is issued under the powers conferred by 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. The purpose is to protect the interests of investors in securities, promote the development of, and regulate the securities markets.
For further information, contact Sapna Sinha, Deputy General Manager, at Tel. no.: 022 2644 9748 or via email at sapna.s@sebi.gov.in.
Key Entities Referenced
SEBI: Securities and Exchange Board of India, the regulatory body issuing the circular.
KYC Registration Agencies KRAs: KYC Registration Agencies, entities registered with SEBI that maintain KYC records.
SEBI KYC Know Your client Registration Agency KRA Regulations, 2011: The regulations governing the KYC Registration Agencies.
Aadhaar: A 12-digit individual identification number issued by the Unique Identification Authority of India.
Association of Mutual Funds in India AMFI: Industry association of mutual funds in India.
Securities and Exchange Board of India Act, 1992: The act of parliament that established SEBI and defines its powers.
Stock Brokers: Intermediaries registered with SEBI through Stock Exchanges.
Mutual Funds MFs and AMCs: Mutual Funds and Asset Management Companies
CIRCULAR
SEBI/HO/MIRSD/SEC-5/P/CIR/2022/100 July 27, 2022
To,
SEBI Registered Intermediaries:
1. KYC Registration Agencies (KRAs),
2. Stock Brokers through Stock Exchanges,
3. Depository Participants (DPs) through Depositories,
4. Mutual Funds (MFs) and AMCs
5. Portfolio Managers (PMs)
6. Collective Investment Schemes (CIS),
7. Investment advisors
8. Registrar and Transfer Agents
9.Custodians
10.Alternate Investment Funds (AIFs)
Association of Mutual Funds in India (AMFI)
Dear Sir/Madam,
Subject: Implementation of Circular on ‘Guidelines in pursuance of amendment
to SEBI KYC (Know Your client) Registration Agency (KRA) Regulations, 2011’
SEBI, vide its circular no. SEBI/HO/MIRSD/DOP/P/CIR/2022/46 dated April 06, 2022,
had issued guidelines in pursuance of amendment to SEBI KYC (Know Your client)
Registration Agency (KRA) Regulations, 2011. The provisions of this circular at clause
9 and clause 13 were to come into effect from July 01, 2022.
2. Subsequently, an extension was granted vide circular no.
SEBI/HO/MIRSD/DOP/P/ CIR/2022/89 dated June 24, 2022 whereby the aforesaid
clauses were to come into effect from August 01, 2022.
3. In this regard, considering the KRA's request for extension of the timeline for
applicability of the said clauses 9 and 13, it has been decided that:
3.1. KYC records of all existing clients (who have used Aadhaar as an OVD)
shall be validated within a period of 180 days from November 01, 2022.
3.2. The validation of all KYC records (new and existing) shall commence
from November 01, 2022.4. 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.
Yours faithfully,
Sapna Sinha
Deputy General Manager
Tel. no.:022 2644 9748
email id: sapnas@sebi.gov.in