In the securities industry, KRA allows for centralized storage and digitization of KYC documents. The client who wishes to open an account/trade/deal with a SEBI registered Intermediary must complete the KRA KYC Registration form and provide supporting papers. The Intermediary will conduct the initial KYC and upload the information to the KYC Registration Agency’s system (KRA). While working with the same client, all SEBI Registered Intermediaries have access to this KYC information. As a result, once a client has completed KYC with a SEBI-registered intermediary, he does not need to repeat the pr
What is KYC?
KYC stands for Know Your Customer. KYC describes a security framework to determine a customer’s identity. Banks, telecommunication companies and other institutions need to know who their customers are in order to carry out their business. KYC is the most important form of customer identification in India. All Indian financial institutions have begun implementing KYC as the backbone to customer authentication process.
Why KYC Registration is Required
At present, all Indian operators in the securities industry are required to register as SEBI Registered Intermediary with the KRA, and the same is registered with the Government of India. The registration process is generally verified and verified by the KYC company. Once a SEBI Registered Intermediary (registered with the Government of India) has completed KYC with a client, the client’s KYC records are stored with the KRA. Moreover, SEBI Registered Intermediaries have access to the KYC information of a client. While working with a client, all SEBI Registered Intermediaries have access to the KYC information of a client. The client who has completed KYC with an SEBI Registered Intermediary can initiate the account opening process.
KRA’s Role in KYC
The SEBI Regulations of 2011 require all KRAs to be registered. As previously indicated, the major function of this agency is to keep KYC data on behalf of intermediaries who have been approved by the market regulator to conduct business in the public sphere. A financial intermediary, like a mutual fund, will undertake KYC on investors and provide the information to the KRA to help with this role. By gaining access to the facts from the agency, an intermediary has quick access to the information. This is done to avoid having to repeat the verification process when the client approaches an intermediary for investment.
How KYC Registration Works
Once the KYC Registration process is completed and the client completes the KYC process, the KRA KYC registration agency uploads the client’s KYC information to the central KYC database. The client who wishes to open an account/trade/deal with a SEBI registered intermediary must complete the KYC Registration form and provide supporting papers. Once the client completes the KYC registration process, he will be able to open an account/trade/deal with the registered intermediary. The KRA KYC registration process enables the client to instantly verify the KYC information of the registered Intermediary. The client can then open the account/trade/deal.
Benefits of KYC Registration
- The identity of the client is maintained –
- All KYC documents can be stored by the agency and provided on demand to the client
- Can be provided to other agencies and firms in case of need (such as Mutual Fund, Securities Exchange Board of India (SEBI), etc.)
- Low to no cost with most agents in the industry, as an intermediary
- All documents are under strict and secure security, hence cannot be misused. Types of KYC Documents and required form to complete KYC Form
- Primary Information- Physical or address proof (e.g. passport, ration card, driving license, voter id card, etc.) -Statutory declaration from the client for the purpose of identifying KYC Data
- The minimum KYC data requirement for opening an account is the client’s PAN (permanent account number) card and Aadhaar card.
With just a few clicks, a client can open an account with a SEBI registered Intermediary, and now he can perform trading, trading in options on E & P index (Spot and Index), and take positions on commodities. The process of opening an account with an intermediary or the regulator is to complete the KYC Registration form and provide supporting papers. A client does not need to complete the KYC process again if he wants to open an account with another intermediary. This removes the need for multiple KYC processes and reduces the processing time. We believe that this move will accelerate the pace of development and improve the client’s experience.