The capital markets regulator Securities and Exchange Board of India (SEBI) has granted BSE Technologies, a subsidiary of the Bombay Stock Exchange (BSE), permission to function as a know your customer (KYC) registration agency.
A KYC registration agency, or KRA, is a SEBI-regulated intermediary that offers market participants approval for investors' KYC, which is required for securities market investing.
BSE Technologies, a subsidiary of the Bombay Stock Exchange (BSE), has been granted authorization to operate as a know your customer (KYC) registration agency by the capital markets regulator Securities and Exchange Board of India (SEBI).
A KYC registration agency, or KRA, is a SEBI-regulated intermediary that approves investors' KYC, which is essential for participating in the securities market.
According to him, SEBI has taken a significant move to increase investor confidence in the securities markets.
SEBI published new instructions for KRAs on Wednesday, requiring them to independently examine all clients' KYC documents beginning July 1.
KRAs would independently validate records of existing and new clients whose KYC has been completed using Aadhaar as an Officially Valid Document, according to the guidelines (OVD).
Clients who completed KYC using non-Aadhaar OVD would have their records confirmed only after getting their Aadhaar number.
The decision came after SEBI issued new guidelines in January, requiring KRAs to conduct independent validation of KYC records submitted to their systems by Registered Intermediaries.