Market regulator the Securities and Exchange Board of India (Sebi) today asked all market intermediaries including mutual funds and stock brokers to submit Know Your Customer (KYC) details of the existing customers with KYC Registration Agency (KRA) by March 31, 2013.
"All market intermediaries to upload the KYC details of the existing clients in the current KRA system in a phased manner," Sebi said in a circular.
KRA are institutions which maintains KYC details. Wholly-owned subsidiaries of stock exchanges and depositories are eligible able to act as KRA.
The regulator has announced five phases for updating KYC details of the existing customers ending March 31, 2013.
Intermediaries must complete the process of sending the original documents to the KRA by March 31, 2013, it said.
It is to be noted that to avoid duplication of KYC process with every intermediary, KRA system was developed for centralization of the KYC records in the securities markets.
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The system was made applicable for new clients who opened accounts with the intermediaries from January 1, 2012.
Further, the circular said, the intermediaries are required to maintain electronic records of the KYCs of their clients and keeping physical records would not be necessary.
While uploading the existing clients' KYC details in the KRA system, the intermediary shall indicate the date of account opening or activation information.
In case the KRA system indicates that the client's KYC data already exists, it said, the other intermediary shall upload the modifications, if any, so that the latest information about the client is available on the system.
Besides, the regulator also directed the stock exchanges and depositories make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another.
"In case of mutual funds, compliance of this circular shall be monitored by the boards of Asset Management Companies and the Trustees and in case of other intermediaries by their the Board of Directors," it said.