Sebi Proposes Streamlined KYC for Financial Ecosystem

Sebi has unveiled proposals aimed at simplifying the client onboarding process and risk management at KYC Registration Agencies. The measures include centralizing information, synchronizing data updates, and removing redundant steps. Sebi is seeking public feedback on these proposals until January 31.

In a significant move to simplify financial transactions, Sebi has introduced new proposals to enhance client onboarding and risk management at KYC Registration Agencies. The proposed changes focus on centralized information collection to save investors from repeatedly submitting the same data.

Part of this framework aims to improve data integrity by tasking KRAs with notifying intermediaries to update records upon significant changes, such as when a minor turns 18 or an ID expires. The initiative also seeks to cut redundant verification steps, streamlining processes for intermediaries.

To ensure swift adoption, Sebi proposes specific timelines for data synchronization. This includes notifying KRAs of account changes and synchronizing records within a set duration. Public comments on these proposals are invited until January 31, as Sebi strives to modernize and simplify the financial ecosystem.