Mutual fund investors no longer need to link their PAN with Aadhaar to obtain 'KYC-registered' status.
Markets regulator Sebi is actively working with the Ministry of Finance and other financial regulators on setting up a centralised KYC (Know Your Customer) system, chairman Tuhin Kanta Pandey has said. The Central KYC is an online database that maintains KYC records of customers in a centralised manner, aiming to streamline compliance across financial institutions.
'Clients deemed higher-risk are required to update their KYC more frequently.'
Brokers have requested for a three-month extension from the Securities and Exchange Board of India (Sebi) for the validation of Know Your Client (KYC) records. In a letter to Sebi, industry body -- Association of National Exchanges Members of India (Anmi) -- has cited various issues and concerns raised by its members that have hampered the smooth completion of the validation process within the stipulated timeline. The Sebi circular had given KYC Registration Agencies (KRAs) a timeline of 180 days, ending on April 30, 2023, to validate client KYCs.
Currently, the facility of sharing of KYC information is available only among Sebi-registered intermediaries.
The mutual fund (MF) gross inflows through the systematic investment plan (SIP) route topped the Rs 20,000 crore mark for the first time in a calendar month as investors opened a record 6.4 million SIP accounts despite a spike in market volatility. The number of accounts opened last month was almost 50 per cent higher than the registrations seen in March. "India's MF industry has reached yet another milestone with the SIP book crossing above Rs 20,000 crore in April 2024.
Moving towards a common Know Your Client 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.
Central KYC not in sync with Sebi's KRA system; regulator writes to finance ministry
The Sebi, which has been mandated by the Supreme Court to facilitate refund of Rs 24,000 crore (Rs 240 billion) with 15 per cent annual interest to bondholders of two Sahara group firms after ascertaining their genuineness.
Entities controlled by governments - sovereign wealth funds, and pension funds - have recorded higher growth in equity assets under custody compared to other foreign portfolio investors (FPIs) over the past five years.
The KYC parameters now include declaration of the gross annual income or net worth.
Markets watchdog Sebi on Tuesday decided to tighten norms for utilisation of IPO proceeds by companies, introduce special situation funds to invest only in stressed assets and amend various regulations, including those on mutual funds and settlement proceedings. The board of Sebi, which met on Tuesday, also gave its nod for amending Foreign Portfolio Investor (FPI) regulations and introducing a provision for appointment or re-appointment of any person, including as a managing director or a whole time director or a manager, who was earlier rejected by the shareholders at a general meeting. Once the amended norms are in place, such appointments or re-appointments can only be done with the prior approval of the shareholders.
The new norms were cleared by the Securities and Exchange Board of India in New Delhi on Thursday and the relevant provisions would be incorporated in the listing agreement soon, Sebi Chairman U K Sinha said.
'Each state and central government body may be asked to update its system to ensure PAN is used as a common identification to access its services.'
Sanjay Kumar Singh tells you what to watch out for when buying insurance and investing in MFs online.
If borrowers don't have access to a bank's credit facility, it could make sense to use peer-to-peer systems.
With equity and commodity exchanges allowed to enter each other's areas from October, brokerages are pump-priming their businesses to allow their clients seamless trading in commodities and equities.
A key demand is to reduce the dividend distribution tax on listed firms.
The panel also suggested that Know Your Client rules should be based on the risk profile of investors.
'The attempt to make Aadhaar mandatory has now emerged as an act of bullying by government agencies, turning citizens into subjects by making fundamental rights conditional on biometric identification,' says Gopal Krishna.
Former chairman of the UIDAI Nandan Nilekani, elucidates how Aadhaar could become the spine for alternative banking and could replace government services with cash benefits.
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