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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSE- Issuance of Circular on Simplification of KYC process and rationalisation of Risk Management Framework at KRAs

16-Aug-2023 | Circular Ref. No: 28/2023

NSE has reiterated a circular issued by SEBI dated 11th August 2023 regarding the Simplification of the KYC process and the rationalization of the Risk Management Framework at KYC (Know Your Client) Registration Agencies (KRAs), effective from 1st September 2023.

By virtue of the Circular, investors' convenience and ease of transactions in the securities market are prioritized. Clients will be permitted to open accounts with intermediaries and engage in securities market transactions once the KYC process is completed. Subsequently, as part of the risk management framework, KRAs will verify specific attributes of clients' records within 2 days of receiving the KYC records. These attributes include:

PAN (including PAN Aadhaar linkage, as stipulated in rule 114AAA of the Income-tax Rules, 1962)
Name
Address
Mobile number
Email ID
For PAN-exempt records, KRAs will verify the other attributes (name, address, mobile number, and email ID). The validated records will be portable, allowing clients to avoid undergoing the KYC process again when dealing with different intermediaries in the securities market. Intermediaries will retrieve the validated records from the KRA database.

Additionally, records of all existing clients whose KYC was completed based on documents other than Aadhaar will be verified within 90 days from 1st September 2023.

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