Sebi eases investor account opening form
27 Dec 2013 5:56 AM IST
Moving towards a common know your client (KYC) framework for the entire securities market, market watchdog Sebi on Thursday simplified investor account opening form by doing away with details about income and occupation of the applicant for the purpose of centralised KYC registration agency.
Sebi, in a circular, has given six months time to various market intermediaries to bring the changes in the KYC form. The Sebi said certain information about applicants like gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person are not required for the centralised KYC Registration Agency (KRA).
The decision was taken after consulting various market participants. KRA are institutions which maintains KYC details of investors. Wholly-owned subsidiaries of stock exchanges and depositories are eligible able to act as KRA. Earlier, the Sebi prescribed a standard account opening form (AOF) which has been divided in two parts, first part contains the basic KYC details of the investor used by all Sebi registered intermediaries. While, the second part captures additional information specific to the area of activity of the intermediary. Further, with the centralised KRA system in place, the client has to undertake the KYC process of the account opening process only once. This means he/she need not undergo the KYC process again when he/she approaches different intermediaries in securities markets.
Sebi, in a circular, has given six months time to various market intermediaries to bring the changes in the KYC form. The Sebi said certain information about applicants like gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person are not required for the centralised KYC Registration Agency (KRA).
The decision was taken after consulting various market participants. KRA are institutions which maintains KYC details of investors. Wholly-owned subsidiaries of stock exchanges and depositories are eligible able to act as KRA. Earlier, the Sebi prescribed a standard account opening form (AOF) which has been divided in two parts, first part contains the basic KYC details of the investor used by all Sebi registered intermediaries. While, the second part captures additional information specific to the area of activity of the intermediary. Further, with the centralised KRA system in place, the client has to undertake the KYC process of the account opening process only once. This means he/she need not undergo the KYC process again when he/she approaches different intermediaries in securities markets.
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