The deadline for KYC registration companies (KRAs) to revalidate the KYC of mutual fund traders, who’ve used Aadhaar as an formally legitimate doc (OVD) for KYC earlier than 1 November 2022, ends on 30 April 2023.
The Securities and Exchange Board of India (Sebi) has already prolonged this deadline a number of instances. According to its final round, KYC information of all present shoppers (who’ve used Aadhaar as an OVD) shall be validated inside a interval of 180 days from 1 November 2022, extending the closing date from 1 July 2022.
As issues stand, the market regulator has not but prolonged the closing date, so the deadline stays 30 April 2023 for now.
Sebi, in its first round on this matter in April final yr, said that “shoppers whose KYC information aren’t discovered to be legitimate by KRA after the validation course of shall be allowed to transact in securities market solely after their KYC is validated”.
In case, the KRAs are yet to reach out to investors for re-validation, mutual fund distributors can ask their investors to re-validate the KYC using Aadhar-based XML or e-Aadhaar or virtual ID (VID).
Once the re-validation is done, Sebi stated that the KRA shall assign a unique client identifier to the investor. This “KRA identifier may be used by the client for opening of account with any other intermediary, without repeating the KYC process”.
In the case of KYC primarily based on non-Aadhar OVD, Sebi in its April 2022 round had said that “the KRA shall solely retailer such information and the identical wouldn’t be validated by KRAs except Aadhaar quantity is offered by the shopper”.
Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.
More
Less
