Sebi proposes to separate KYC and account opening process

Capital markets regulator Sebi on Wednesday proposed that KYC and account opening process should be separated in order to standardise the process and avoid duplication. It has been suggested that KYC should be done through stock exchanges, depositories and KYC Registration Agencies(KRAs), and documentation for opening of account for entering into transaction would continue to be the responsibility of concerned registered intermediaries. At present, KYC of clients in the securities market is conducted by registered intermediaries -- stock brokers, depository participants, RTAs -- and then Registered Intermediaries (RIs) upload KYC records in the KRA system. The role of KRAs is centralisation of the KYC records, ascertaining the upload of KYC documents and sharing KYC records with Sebi registered intermediaries as and when required, Sebi noted in the consultation paper. The responsibility of conducting the KYC and maintenance of records rests with the RIs and KRAs is only a reposito

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