The Securities and Exchange Board of India (SEBI) has announced a relaxation of Know Your Customer (KYC) norms, aiming to simplify the existing risk management framework and enhance ease of transactions. The revised norms have been implemented in response to feedback received from stakeholders in the securities market.
According to SEBI, KYC Registration Agencies (KRAs) are now required to verify a client’s Permanent Account Number (PAN), name, and address within two days of receiving KYC records. Records verified by KRAs against official databases (Income Tax Department database on PAN, Aadhaar XML, Digilocker, or M-Aadhaar) will be considered ‘validated records.’ Exchanges, depositories, and intermediaries are required to implement the necessary technical changes in their systems by May 31, 2024.
These changes are part of SEBI’s ongoing efforts to streamline regulations and promote ease of doing business in the securities market. The relaxation of KYC norms is expected to reduce the burden on clients and intermediaries while maintaining a robust risk management framework.
