Sebi again extends deadline for commencing KYC record validation by KRAs

Capital markets regulator Sebi on Wednesday extended the deadline by three months to November 1, for commencing the validation of all KYC records by KYC Registration Agencies (KRAs).

This is the second time, when the Securities and Exchange Board of India (Sebi) has extended the deadline.

Initially, such agencies were required to independently validate the Know your Client or KYC records of all clients by July 1, which was extended till August 1.

Now once again the regulator has received requests from the KRAs to extend the timelines.

"Considering the KRAs' request for extension of the timeline... it has been decided that the validation of all KYC records (new and existing) shall commence from November 1, 2022," Sebi said.

Further, it said that KYC records of all existing clients, who have used Aadhaar as an Officially Valid Document (OVD), will be validated within a period of 180 days from November 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.