Moving towards a common Know Your Client (KYC) framework for the entire securities market, Sebi today simplified investor account opening form by doing away with details about income and occupation of the applicant for the purpose of centralised KYC registration agency.
The Securities and Exchange Board of India (Sebi), in a circular, has given six months time to various market intermediaries to bring the changes in the KYC form.
The Sebi said certain information about applicants like gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person are not required for the centralised KYC Registration Agency (KRA).
The decision was taken after consulting various market participants. The move would facilitate in making the KYC uniform for the entire financial sector.
KRA are institutions which maintains KYC details of investors. Wholly-owned subsidiaries of stock exchanges and depositories are eligible able to act as KRA.
Earlier, the Sebi prescribed a Standard Account Opening Form (AOF) which has been divided in two parts, first part contains the basic KYC details of the investor used by all Sebi registered intermediaries.
While, the second part captures additional information specific to the area of activity of the intermediary.
Further, with the centralised KRA system in place, the client has to undertake the KYC process of the account opening process only once. This means he/she need not undergo the KYC process again when he/she approaches different intermediaries in securities markets.
"It has now been decided in consultation with various market participants to shift certain information (gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person) of part I to part II of the AOF)," as per the circular.