Ensuring Seamless KYC Compliance: Key Updates from SEBI's Latest Circular for NISM Exam Preparation

Uploading of KYC Information by KYC Registration Agencies (KRAs) to Central KYC Records Registry (CKYCRR)

This circular updates the requirements for uploading and managing Know Your Client (KYC) information by KYC Registration Agencies (KRAs) to the Central KYC Records Registry (CKYCRR). It aims to streamline processes and enhance the efficiency of KYC information management in the securities market.

Key Modifications:

  1. Continued Uploading by Intermediaries:

    • Registered intermediaries must continue to upload, download, and modify KYC information with proper authentication on KRA systems according to SEBI KRA Regulations, 2011.
  2. Timely Uploading by KRAs:

    • KRAs must upload verified/validated KYC information onto the CKYCRR system within 7 days of receiving it from intermediaries, or according to the timeline specified under PML Rules.
    • Integration of KRA systems with CKYCRR must be completed, and the uploading of KYC records on CKYCRR should commence from August 01, 2024.
  3. Uploading of Existing KYC Records:

    • KRAs must ensure that all existing KYC records of legal entities and individual clients are uploaded to CKYCRR within 6 months starting from August 01, 2024.
  4. Regulatory Authority:
    This circular is issued under the powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 17 of the SEBI (KYC Registration Agency) Regulations, 2011.

    The circular is available on the SEBI website under the "Legal - Circulars" section.

Key Points for NISM Exam:

  1. Intermediary Responsibilities:

    • Intermediaries must upload KYC information to KRA systems as per SEBI KRA Regulations, 2011.
    • They must ensure proper authentication during uploading, downloading, or modifying KYC information.
  2. KRA Responsibilities:

    • KRAs must upload validated KYC information to CKYCRR within 7 days of receipt.
    • KRAs need to integrate their systems with CKYCRR by August 01, 2024.
    • Existing KYC records must be uploaded to CKYCRR within 6 months from August 01, 2024.
  3. Timeline and Compliance:

    • KRAs and intermediaries have specific deadlines to adhere to, ensuring the timely and accurate updating of KYC information.
    • August 01, 2024, is a crucial date for commencing new uploads and integration.
  4. Regulatory Framework:

    • This circular is part of the regulatory measures under the SEBI Act, 1992, and SEBI KRA Regulations, 2011, aimed at protecting investors and promoting securities market development.

Understanding these key points will help in preparing for regulatory compliance exams, focusing on the updated responsibilities and timelines for intermediaries and KRAs regarding KYC information management.

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