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

Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration

05-Sep-2025 | SEBI/HO/MIRSD/PODFATF/P/CIR/2025/123

SEBI has issued a circular regarding Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration, effective from 05th September, 2025.

By virtue of this circular, SEBI has streamlined the process for surrender of KRA registration in case of voluntary as well as involuntary scenarios so that critical operations and services of KRA are wind down in an orderly manner.

Key Highlights-
1. The critical operations include registration and modification of KYC records of investors through registered intermediaries and maintaining interoperability amongst KRAs.
2. KRA surrendering its certificate of registration must transfer KYC records available with it to another SEBI-registered KRA ("Transferee KRA").
3. KRA shall have a Standard Operating Procedure (SOP) to be followed in both scenarios - voluntary or involuntary surrender of registration, which shall be made available on their websites within 90 days from the date of issuance of this circular and shall be reviewed periodically or at least once in 5 years.
4. KRA to constitute an Oversight Committee, which shall be responsible for monitoring the winding-down process.
5. KRA to comply with the provisions of SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011, various circulars and guidelines issued which are during the entire period of winding down of critical operations and services of KRA.

Kindly refer to the attached document for more information.

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