Sebi Streamlines KYC Registration Surrender Process to Protect Investors

The Securities and Exchange Board of India (Sebi) on Friday issued guidelines to streamline the surrender process of Know Your Client (KYC) Registration Agencies (KRAs). This move ensures an orderly cessation of services while safeguarding investor interests in voluntary and involuntary exit scenarios.

Sebi explained that KRAs must maintain interoperability and portability of investor KYC records. Those relinquishing their registration need to transfer all records, including modifications and audit trails, to another Sebi-registered KRA, ensuring continuous services without requiring fresh KYC.

Sebi's framework mandates each KRA to have a board-approved Standard Operating Procedure (SOP) to handle winding down and data transfer efficiently. Oversight committees will monitor the process, and timelines are set for each stage, ensuring seamless investor service continuity.

(With inputs from agencies.)