common KYC in the financial sector

The SEBI Board met today and decided among other matters to expand the common KYC requirements to the financial sector as well. Presently common KYC is prevalent among the SEBI registered intermediaries i.e. capital market participants, but does not extend to other sectors like banking, insurance etc. Common KYC is beneficial because once the KYC is registered with a central KYC registry, there is no need to keep doing the KYC again and again while transacting in the market. 

This is the extracts of the SEBI Press Release in the subject. 

Common KYC in Financial Sector

The centralized KYC system introduced by SEBI has evolved and stabilized with data of about 1.95 crore KYCs of investors. The client who has already done the KYC with any SEBI registered intermediary need not undergo the same process again when he approaches another intermediary. The system has benefited the investors. So now the KYC data base will be shared with other financial sector regulators like RBI, IRDA, PFRDA etc. 

Currently, the facility of sharing of KYC information is available only among SEBI registered intermediaries. Board has now approved the amendment to SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011 for sharing of KYC information available on the centralised system with the entities regulated by other financial sector regulators. This would further facilitate the KYC process for the investors in the entire financial sector. This will  not only reduce the paper-work and bring down cost of operations for the investors as well as for the intermediaries, but will also save the investors from the hassle of getting KYC done again by the intermediaries regulated by other financial sector regulators.

 

The full text of the SEBI Board meeting press release is available at this link.

http://www.sebi.gov.in/sebiweb/home/detail/28252/yes/PR-SEBI-Board-Meeting

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