Active Stocks
Thu May 30 2024 10:03:51
  1. Tata Steel share price
  2. 167.20 -4.02%
  1. State Bank Of India share price
  2. 827.15 0.51%
  1. NTPC share price
  2. 360.15 -1.22%
  1. Power Grid Corporation Of India share price
  2. 310.80 -2.13%
  1. Tata Motors share price
  2. 940.70 -0.31%
Business News/ Money / Sebi relaxes draconian KYC norms to simplify risk management framework. Details here
BackBack

Sebi relaxes draconian KYC norms to simplify risk management framework. Details here

Markets regulator Sebi issued a notification easing KYC norms to simplify the risk management framework, based on the master circular released on October 12 last year.

Sebi said that KRAs should verify the client's Permanent Account Number, name, and address within two days of receiving KYC records.Premium
Sebi said that KRAs should verify the client's Permanent Account Number, name, and address within two days of receiving KYC records.

Markets regulator Securities and Exchange Board of India (Sebi) on Tuesday said that it has decided to relax Know Your Customer (KYC) norms to simplify the risk management framework. The markets regulator issued an updated notification on the master circular dated October 12.

“Sebi circular dated October 12, 2023, has specified the Risk Management Framework at KRAs ((KYC Registration Agencies) wherein the attributes for verification by KRAs have been mentioned. Based on the feedback received from the stakeholders in the securities market and for ease of transacting by clients, the provisions of the Master Circular dated October 12, 2023, have been reviewed and it has been decided to simplify the risk management framework," the markets regulator said in an official release.

Also read: Sebi’s master circular on KYC norms: What does it mean for the investors?

In the revised circular, Sebi said that KRAs shall verify the client's Permanent Account Number (PAN), name, and address within two days of receiving KYC records.

It further added that the client's records verified by KRAs with official databases (such as the Income Tax Department database on PAN, Aadhaar XML, Digilocker or M-Aadhaar) shall be considered ‘validated records’.

Sebi also informed that the exchanges, depositories and intermediaries concerned should complete the necessary technical change in their systems by May 31, 2024.

Also read: What to do when a seller fails to disclose significant property defects

Last year, on October 12, the capital markets regulator released a master circular on KYC rules for investors to enable users to access all the applicable circulars and directions in one place.

“This master circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market," the circular read.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 May 2024, 08:59 PM IST
Next Story footLogo
Recommended For You