KYC Registration Agency

KRA – KYC REGISTRATION AGENCY.

 

KRA’s full form is KYC Registration Agency. KRA is registered with SEBI under the KYC Regulations Act of 2011. This enterprise is accountable for maintaining the KYC statistics of the traders centrally. These registration businesses preserve those records on behalf of the Capital Market intermediaries which include Asset Management Companies, stock agents, and so forth. Which are registered with SEBI. There are extraordinary KRA portals such as CAMSKRA, CVLKRA, Karvy KRA and so on to check KYC Status.

kyc registration agency license in indiaWith a view to carrying uniformity inside the KYC requirements for the securities markets, SEBI has initiated the usage of uniform KYC with the aid of all SEBI registered intermediaries. In this regard, SEBI has issued the SEBI KYC (Know Your Client) Registration Agency (KRA), Regulations, 2011.

Pursuant to the aforesaid law, M/s. NSE Data & Analytics Limited (formerly referred to as DotEx International Limited) which is a wholly-owned subsidiary of the National Stock Exchange of India Limited (NSE), has been approved by using SEBI to feature as a KRA.

KRA presents for centralized storage/digitization of the KYC information within the securities marketplace. The patron who’s desirous of starting an account/change/address the SEBI registered Intermediary shall publish the KYC details via the KYC Registration shape and supporting documents. The Intermediary shall carry out the initial KYC and add the information to the machine of the KYC Registration Agency (KRA). This KYC information can be accessed using all the SEBI Registered Intermediaries even as handling the same customer. As a result, once the consumer has completed KYC with a SEBI registered intermediary, he wants not to undergo the equal method again with any other intermediary

WHY IS THE NEED FOR KRA?

Previously, the KYC manner across special SEBI registered intermediaries like project capital price range, portfolio managers, Mutual Funds, and so forth. Was now not uniform in any respect. There changed into a separate KYC technique for each intermediary which became very tiresome for buyers. Thus, as a way to deliver uniformity inside the KYC system, SEBI introduced the concept of the KYC Registration Agency. KYC registration employer removes the duplication of the KYC method for exceptional intermediaries. As consistent with the SEBI guidelines of 2011, the traders who desire to spend money on Mutual Funds or come to be KYC critics ought to check in with any individual of the above-cited companies. Once the customers are registered or are KYC compliant, they can begin Investing in Mutual Funds. Once an investor completes a KYC procedure with any SEBI registered KYC registration organization, they don’t need to repeat the method whilst interacting with some other KYC registration businesses. The records of the finished KYC process are stored centrally with the aid of the corporation and can be accessed by using different intermediaries and KYC registration groups. Also, any changes that may occur in the future are up to date centrally. This can be completed by giving a single request to the corporation thru any registered intermediary.

WHAT ARE THE FUNCTIONS AND RESPONSIBILITIES OF KRA?

SEBI KRA Regulations 2011 defines the roles and duties of KRA. Key points are:

  • KRA will be chargeable for storing, safeguarding, and retrieving the KYC files which might be being submitted with the aid of various SEBI registered intermediaries.
  • KRA shall retain the original KYC documents of the client, in both bodily and digital form for the period certain, in addition to ensuring that retrieval of KYC facts is facilitated within stipulated term.
  • Any data updated approximately a purchaser will be disseminated through KRA to all intermediaries that avail of the offerings of the KRA in respect of that patron.
  • KRA(s) shall have digital connectivity and with different KRA(s) as a way to set up inter-operability amongst KRAs.
  • KRA shall send a letter to each customer after receipt of the KYC documents from the intermediary, confirming the client’s details thereof.
  • KRA shall take good enough steps for the redressal of the grievances of the clients within one month of the date of receipt of the criticism.

SEBI GUIDELINES FOR KYC REGISTRATION AGENCIES IN INDIA:

The mechanics of walking a mutual fund house include strict guidelines in which the operations need to be completed inside the installed framework regulated with the aid of SEBI (Securities and Exchange Commission of India). This includes following the KYC strategies. Know Your Client or KYC, as popularly recognized throughout the industry, is the method of identifying a patron earlier than signing him/her as an investor below a selected fund. KYC norms mandate Financial Institutions and Financial Intermediaries to gain and affirm non-public and contact statistics of their customers by the laid down norms.

From January 2012, SEBI has brought a not unusual KYC utility form to ensure uniformity in retaining and processing information relating to investors in the mutual price range. The system of verification also includes IPV (In Person Verification) for mutual finances. To make the system of gathering records greater streamlined and relevant, a KRA (KYC Registration Agency) is entrusted with the duty of maintaining KYC records. Regardless of the quantity invested, KYC is obligatory for all programs.

The following varieties of transactions require verification inside the mandated format.

  • New or Additional Purchases
  • Transactions such as Switching
  • SIP or MICRO SIP Registration
  • STP Registration

LIST OF DOCUMENTS REQUIRED:

  • INDIVIDUALS
  1. Person of Individual:
  • Unique Identification Number (UID) (Aadhaar) Passport/Voter ID card/driving license.
  • PAN card with photo.
  • Identity card/document with applicant’s Photo, issued by way of any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions.
  • Colleges affiliated with Universities, Professional Bodies along with ICAI, ICWAI, ICSI, Bar Council, and so forth., to their Members, Credit playing cards/Debit playing cards with photographs issued by way of Banks.
  • Proprietor – In the case of sole proprietors, the sole owner should make the utility in his character call and capacity. The requirements continue to be similar to those in the case of individuals.
  • Non-Resident Indian: Submission of passport replica with applicable info is mandatory. Also in the case of NRI, distant places’ address is obligatory.
  • In the case of Merchant Navy NRIs, the Mariner’s announcement or licensed copy of CDC (Continuous Discharge Certificate) is to be obtained.
  1. Person of Association:
  • Passport/Voters Identity Card/Ration Card/Registered Lease or Sale Agreement of Residence/Driving License/Flat Maintenance bill/Insurance Copy.
  • Utility bills like Telephone Bill (handiest land line), Electricity bill or Gas bill – Not greater than three months old.
  • Bank Account Statement/Passbook – Not extra than three months vintage.
  • Self-assertion by way of High Court and Supreme Court judges, giving the brand new address in respect of their own money owed.
  • Proof of Address issued by using any of the subsequent: Bank Managers of Scheduled Commercial Banks/Scheduled Co-operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary Public/Elected representatives to the Legislative Assembly/Parliament/Documents issued with the aid of any Govt. Or Statutory Authority
  • Identity card/file with deal with, issued by using any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, and Professional Bodies including ICAI, ICWAI, ICSI, Bar Council and so forth., to their Members.
  • For FII/sub account, Power of Attorney given via FII/sub-account to the Custodians (which might be duly notarized and/or apostilled or consul raised) that gives the registered cope with having to be taken.
  • The proof of address with inside the name of the spouse can be accepted

In case of Non-Individuals, additional documents to be acquired from non-individuals, over & above the POI & POA, as mentioned beneath

  • CORPORATE
  • Copy of the stability sheets for the ultimate 2 economic years (to be submitted each year).
  • Photograph, POI, POA, PAN, and DIN numbers of complete time administrators/two administrators in charge of day-to-day operations.
  • Copies of the Memorandum and Articles of Association and certificates of incorporation.
  • Copy of the Board Resolution for investment in securities marketplace.
  • Authorized signatories listing with specimen signatures.
  • PARTNERSHIP FIRM
  • Copy of the balance sheets for the final 2 economic years (to be submitted every 12 months).
  • Certificate of registration (for registered partnership firm best).
  • Copy of partnership deed.
  • Authorized signatories listing with specimen signatures.
  • Photograph, POI, POA, PAN of Partners.
  • TRUST
  • Copy of the stability sheets for the final 2 economic years (to be submitted every year).
  • Certificate or registration (for registered consider most effective).
  • Copy of Trust deed.
  • List of trustees certified with the aid of dealing with trustees/CA.
  • Photograph, POI, POA, PAN of Trustees.
  • HUF
  • PAN of HUF/Karta.
  • Deed of assertion of HUF/List of coparceners.
  • Bank pass-book/financial institution assertion inside the name of HUF/Karta.
  • Photograph, POI, POA, PAN of Karta.
  • UNINCORPORATED ASSOCIATION OR A BODY OF PEOPLE –
  • Proof of Existence/Constitution document.
  • Resolution of the handling body & Power of Attorney granted to transact enterprise on its behalf.
  • Authorized signatories listing with specimen signatures.
  • Banks/Institutional Investors.
  • Copy of the constitution/registration or annual record/stability sheet for the ultimate 2 monetary years.
  • Authorized signatories list with specimen signatures.
  • Foreign Institutional Investors (FII) *FPI.
  • Copy of SEBI registration certificate.
  • Authorized signatories listing with specimen signatures.
  • Foreign Portfolio Investor (FPI).
  • Army/Government Bodies.
  • Self-certification on letterhead.
  • Authorized signatories list with specimen signatures.
  • Registered Society.
  • Copy of Registration Certificate under Societies Registration Act.
  • List of Managing Committee individuals.
  • Committee resolution for people authorized to act as authorized signatories with specimen signatures.
  • True copy of Society Rules and Bye Laws certified through the Chairman/Secretary.

REGISTRATION OF KRA:

 

Application

Made to board in form certain below schedule II.

Requirements-

Not encompass any deceive or false information, if any deceive facts are supplied it shall be rejected supplied opportunity of being heard granted. Before rejecting any software board can also provide 30 day time period to dispose of any objections.

Furnishing of Information, Clarification, and Personal Representation-

If the board requires it may ask in addition explanation of statistics.

Consideration of Application for Grant of Certificate of Registration-

Following situations are to be satisfied to provide certification-

  • The applicant should be a suit and proper man or woman.
  • Wholly owned subsidiary of an identified stock trade, having a kingdom-extensive network of trading terminals
  • Wholly owned subsidiary  of  a  depository  or  any  different  intermediary  registered  with  the Board
  • Wholly owned subsidiary of a Self-Regulatory Organization (SRO) registered beneath SEBI (Self-Regulatory Organization) Regulations, 2004
  • The applicant shall have internet really worth at least Rs 25 crore on a non-stop basis.

GRANT OF CERTIFICATES OF REGISTRATION:

 

(1) The Board, once happy that the applicant is eligible, shall send intimation to that effect to the applicant, for the supply of a certificate of registration, and furnish a certificate in the Form.

(2) The certificates of registration granted beneath sub-regulation (1) will be valid until it’s far suspended or canceled with the aid of the Board.]

(3) The provision certificates of registration shall be issued to the fee of such costs.

(4) The KRA shall right now intimate the Board, information of adjustments that have taken area within the information that become submitted, at the same time as searching for registration.

(5) Where the KRA proposes trade in control, it shall attain earlier approval of the Board for persevering to behave as such after the change

FAQ:

Que: What is KYC?

Ans: KYC is the acronym for Know Your Customer. According to the KYC Regulations Act of 2011, all banks and economic establishments must have the duly crammed KYC kinds of their clients as a part of the gadget. This technique is supervised by the Securities and Exchange Board of India or SEBI.

Que: How does the KRA benefit the investors and the intermediaries?

Ans: KRA now not most effective prevents duplication and inconvenience to traders, it also permits a single factor exchange management. Further, intermediaries need not acquire KYC files from KYC compliant customers, as a result putting off the need to acquire and save the equal. Inspection might be on the premise of scanned images, which could simplify compliance with KYC necessities.

Que: Are there registered corporations to post your KYC files?

Ans: Yes, you have to post your KYC documents via one of the 5 SEBI registered corporations. The corporations chargeable for KYC registration to help buyers are as follows: CDSL Ventures Limited (CVL) Computer Age Management Services Pvt Ltd. NSDL Database Management Limited Karvy Data Management Services The National Stock Exchange or NSE All of those are SEBI registered companies responsible for KYC registration.

Que: What information will I need to check my KYC registration status on-line?

Ans: To take a look at your KYC registration fame online, you may ought to log in to the unique enterprise’s website via which you have registered your KYC documents. After that, you may ought to provide your PAN information and your Aadhar wide variety to get your KYC registration repute.

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