Sebi extends deadline for commencing KYC record validation by KRAs

Sebi has extended the deadline by one month to August 1 for commencing the validation of all KYC records by KYC Registration Agencies (KRAs).

Earlier, such agencies were required to independently validate the KYC records of all clients from July 1.

Sebi has received requests from the KRAs to extend the timelines.”After consideration, it has been decided that the validation of all KYC records (new and existing) shall commence from August 1, 2022,” Sebi said in a circular.

Further, KYC records of all existing clients who have used Aadhaar as an Officially Valid Document (OVD) will be validated within 180 days from August 1. Earlier, the deadline was July 1.

The regulator, in January, notified new norms to make KRAs responsible for carrying out independent validation of the KYC records uploaded onto their system by Registered Intermediaries (RIs).

Under the notified rules, such agencies will have to maintain an audit trail of the upload/modification/download with respect to KYC records of clients.