Sebi cancels registrations of 8 funding advisers for non-payment of renewal charges
They will now full the method from Monetary Motion Activity Pressure (FATF)-compliant international locations with out being bodily current in India.
The revised framework will come into impact from December 3, Sebi mentioned in its round.
Below the framework, intermediaries registered with Sebi can settle for digital submission of KYC info and supporting paperwork from such shoppers with out requiring them to be bodily current in India throughout the onboarding course of.
The transfer is aimed toward simplifying the onboarding course of and easing compliance necessities for abroad buyers.
“In an effort to ease the method of onboarding a person Individual Resident Outdoors India (PROI) shopper, it has been determined to assessment the present provisions governing the KYC course of. Particular person PROI shopper shall imply a Non-Resident Indian (NRI), Abroad Citizen of India (OCI) or international nationwide,” SEBI mentioned.
“The requirement of a shopper being in India throughout digital onboarding is being relaxed for a person PROI shopper situated in a FATF-compliant nation, and the middleman might settle for digital submission of KYC info and supporting paperwork from such shopper,” it added.The regulator has additionally launched larger portability of KYC information, directing KYC Registration Businesses (KRAs) to tag particular person attributes as ‘validated’ wherever they’ve been verified in opposition to official or supply databases.
KYC information will stay transportable and might be shared with different intermediaries, no matter whether or not each particular person attribute has been validated.
Additional, intermediaries shall be permitted to depend on KYC undertaken by one other SEBI-registered middleman or an entity regulated by different monetary sector regulators, based mostly on information out there with KRAs or the Central KYC Data Registry (CKYCRR).
Nevertheless, the middleman will retain final accountability for making certain KYC compliance, together with enterprise enhanced due diligence based mostly on the shopper’s threat profile.
Below the revised norms, intermediaries shall be required to gather the shopper’s PAN, passport and, wherever relevant, OCI card, together with proof of id and tackle. The abroad tackle shall be thought of the present tackle for particular person PROI shoppers.
The regulator has additionally permitted submission of KYC kinds and specimen signatures by way of digital modes, topic to prescribed verification necessities.
In instances the place bodily in-person verification (IPV) isn’t possible, intermediaries can undertake Video In-Individual Verification (VIPV), topic to safeguards equivalent to reside geo-tagging, face-liveness checks, end-to-end encryption and the presence of an authorised official of the middleman throughout the course of, Sebi mentioned.
Sebi additional mentioned intermediaries should submit the KYC info of particular person PROI shoppers to the KRA inside three working days of completion of the KYC course of.
The revised framework will even apply to re-KYC of shoppers residing in FATF-compliant international locations.
