Context:
In a bid to improve transparency and investor protection, the Securities and Exchange Board of India (SEBI) has proposed the introduction of an ‘Investor Charter’ for Know Your Client (KYC) Registration Agencies (KRAs). This move aims to enhance investor awareness and streamline interactions with KRAs for availing Investor Service Requests.
Purpose of the Investor Charter
- To educate investors about the role and responsibilities of KRAs.
- To outline the services offered, investor rights, and the grievance redressal mechanism.
- To promote standardized and transparent handling of KYC procedures in the securities market.
Key Elements of the Proposed Charter
- Vision and mission statements of KRAs
- List of services provided to investors
- Investors’ rights and responsibilities
- Do’s and Don’ts for investors while dealing with KRAs
- Clear grievance redressal mechanisms
SEBI mandates all registered KRAs to publicly display the charter on their websites, offices, and circulate it to investors via email.
About KYC Registration Agencies (KRAs)
- KRAs were introduced under the SEBI (KRA) Regulations, 2011 to centralize the storage and digitization of KYC records.
- A client opening an account or trading with any SEBI-registered intermediary must complete the KYC process, which is then uploaded by the intermediary to a KRA.
- Once registered, this KYC data can be accessed by all SEBI-registered intermediaries, eliminating the need for multiple submissions by the same client.
This proposed charter is part of SEBI’s ongoing efforts to strengthen investor confidence, encourage participation in the capital markets, and ensure a seamless and investor-friendly experience across all KYC touchpoints.
