SEBI Mandates KRAs to Update KYC Information on Central KYC Records Registry

Current Context: The Securities and Exchange Board of India (SEBI) has directed KYC Registration Agencies (KRAs) to integrate their systems with the Central KYC Records Registry (CKYCRR) and begin uploading verified KYC information of clients.

• Effective Date: The new guidelines will come into effect starting August 1, 2024.
• Previous Responsibility: Previously, the responsibility of uploading KYC details onto CKYCRR fell on market intermediaries such as stock brokers and alternative investment funds.
• New Guidelines: According to the new guidelines, KRAs will have to upload verified or validated KYC information onto CKYCRR within seven days of receiving it from intermediaries.
• Existing Records: KRAs will ensure that existing KYC records of legal entities and of individual clients are uploaded on to CKYCRR within a period of 6 months from August 1.
• Benefits: Clients will no longer need to submit KYC documents multiple times to different financial institutions, as their verified records will be available in the centralised CKYCRR system. 
• This integration is expected to simplify customer onboarding by reducing the turnaround time to acquire new clients.

Question:

1 According to the new guidelines, within how many days should KRAs upload verified or validated KYC information onto CKYCRR after receiving it from intermediaries?

• A) Within 3 days
• B) Within 5 days
• C) Within 7 days
• D) Within 10 days

Answer: C) According to the new guidelines, KRAs will have to upload verified or validated KYC information onto CKYCRR within seven days of receiving it from intermediaries.