SEBI issues clarification on process and use of technology for KYC

Apr 28, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Securities and Exchange Board of India (SEBI) on April 24, 2020, has issued clarification on Know Your Client (KYC) process and use of technology for KYC. The KYC and Customer Due Diligence (CDD) policies are the foundation of an effective Anti-Money Laundering process. The KYC process requires every SEBI registered intermediary to collect and verify the Proof of Identity (PoI) and Proof of Address (PoA) from the investor. SEBI has decided to introduce technological innovations which can facilitate online KYC. To enable the Online KYC process for establishing account based relationship with the registered intermediary (RI), investor’s KYC can be completed through online or App based KYC, in-person verification through video, online submission of Officially Valid Document (OVD) or other documents under eSign. The investor needs to fill up the online KYC form and submit requisite documents online. Once all the information is filled up by the investor as per the online KYC form, KYC process could be completed as under:

a) The investor would take a print-out of the completed KYC form and after affixing their wet signature, send the scanned copy or photograph of the same to the RI under eSign, or 

b) Affix online the cropped signature on the filled KYC form and submit the same to the RI under eSign.

SEBI have further explained the features of online KYC App of the RI and Video in Person Verification (VIPV) for Individuals. These shall facilitate taking photograph, scanning, acceptance of OVD through digilocker, video capturing in live environment, usage of the App only by authorized person of the RI and may undertake live VIPV of an individual customer, after obtaining informed consent.

[SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/73]


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