SEBI KYC Regulation Amended
SEBI KYC Regulation Amended
EXTRAORDINARY
PUBLISHED BY AUTHORITY
NOTIFICATION
CHAPTER I
PRELIMINARY
Short title & commencement
1. (1) These regulations may be called the Securities and Exchange Board of India {KYC (Know
Your Client) Registration Agency} Regulations, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions
2. (1) In these regulations, unless the context otherwise requires, the terms defined herein shall
bear the meanings assigned to them below -
(a) ‘‘Act’’ means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) “Board” means the Securities and Exchange Board of India established under section 3
of the Act;
(c) “Certificate” means a certificate of registration granted by the Board under these
regulations;
(d) “Client” means a person seeking to do/has done his KYC through intermediary with
KRA;
1
[(da) “Change in control” in case of a body corporate –
(A) if its shares are listed on any recognised stock exchange, shall be construed
with reference to the definition of control in terms of regulations framed under
clause (h) of sub-section (2) of section 11 of the Act;
(B) if its shares are not listed on any recognised stock exchange, shall be construed
with reference to the definition of control as provided in sub-section (27) of Section
2 of the Companies Act, 2013 (18 of 2013);]
(e) ‘‘Inspecting authority’’ means any one or more person appointed by the Board to
exercise powers conferred under chapter IV;
(f) “Intermediary” means an entity associated with securities market and registered under
sub-section (1A), (1B) and (1) of Section 12 of the Act; who is required to do KYC of its
clients;
(g) “Intermediaries Regulations’’ means Securities and Exchange Board of India
(Intermediaries) Regulations, 2008;
(h) “KYC Registration Agency (KRA)” is a company formed and registered under the
2
[Companies Act, 2013 (18 of 2013)] and which has been granted a certificate of
registration under these regulations which hereinafter shall be deemed to be an
intermediary in terms of the provisions of the Act;
(i) ‘‘KYC’’ means the procedure 3[specified] by the Board for identifying and verifying
the Proof of Address, Proof of Identity and compliance with rules, regulations, guidelines
and circulars issued by the Board or any other authority for Prevention of Money
Laundering from time to time;
(j) “Operating Instructions” means operating instructions made by a KRA under Regulation
15;
4
[***]
1
Substituted by the Securities and Exchange Board of India (Change in Control in Intermediaries) (Amendment)
Regulations, 2023 w.e.f. 17-1-2023. Prior to its substitution, clause (da) read as under:
““change in control”, in relation to a KRA, means: ─
(i) if its shares are listed on any recognised stock exchange, change in control within the meaning of
regulations framed under clause (h) of sub-section (2) of section 11 of the Act;
(ii) in any other case, change in the controlling interest;
Explanation. ─ For the purpose of sub-clause (ii), the expression “controlling interest” means,
(A) an interest, whether direct or indirect, to the extent of at least fifty-one percent of voting rights; or
(B) right to appoint majority of the directors or to control the management directly or indirectly;”
2
The words and symbols “Companies Act, 1956” substituted with “Companies Act, 2013 (18 of 2013)” by the
Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} (Amendment)
Regulations, 2022, w.e.f. 28-01-2022.
3
The word “prescribed” substituted with “specified” by the Securities and Exchange Board of India {KYC (Know
Your Client) Registration Agency} (Amendment) Regulations, 2022, w.e.f. 28-01-2022.
4
Omitted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022. Prior to omission, clause (k) read as under:
5
[***]
6
[(2) All other words and expressions used but not defined in these regulations shall have the
same meaning as have been assigned to them under the Act or the Securities Contracts
(Regulation) Act, 1956 (42 of 1956), or the Depositories Act, 1996 (22 of 1996), or the
Companies Act, 2013 (18 of 2013), or Prevention of Money Laundering Act, 2002 (15 of
2003) or any rules or regulations made thereunder or any statutory modification or re-
enactment thereto, as the case may be.]
CHAPTER II
REGISTRATION OF KRA
Application for grant of certificate of 7[***] registration
3. An application for the grant of a certificate of registration as a KRA shall be made to the Board
in Form as specified in Schedule I and shall be accompanied by such fees and in such manner as
specified in Schedule II of these regulations.
8
The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of
Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
9
The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of
Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
10
The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of
Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
11
Inserted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
Registration of Certain Intermediaries) (Amendment) Regulations, 2016 shall be deemed to have
been granted a certificate of registration, in terms of sub-regulation (1).]
12
[(2) The certificate of registration granted under sub-regulation (1) shall be valid unless it is
suspended or cancelled by the Board.]
(3) The grant of certificate of 13[***] registration shall be subject to the payment of such fees
and in such manner as specified in Schedule II of these regulations.
14
[(4) The KRA shall immediately intimate the Board, details of changes that have taken place
in the information that was submitted, while seeking registration.]
15
[(5) Where the KRA proposes change in control, it shall obtain prior approval of the Board for
continuing to act as such after the change.]
8. 16[***]
12
Substituted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to substitution, it sub-regulation (2) read
as under:
“(2) The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years
from the date of its issue to the applicant.”
13
The word “initial” was omitted by the Securities and Exchange Board of India (Change In Conditions Of
Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
14
Inserted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
15
Inserted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
16
Omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to omission regulation 8 read as under:
“Grant of certificate of permanent registration
8. (1) The KRA which has been granted a certificate of initial registration under regulation 7 may, three months
before the expiry of the period of certificate of initial registration, make an application for grant of certificate
of permanent registration in the Form as specified in Schedule I.
(2) An application under sub-regulation (1) shall be accompanied by such fees and in such manner as specified
in Schedule II of these regulations.
(3) The application for grant of a certificate of permanent registration shall be accompanied by details of the
changes that have taken place in the information that was submitted to the Board while seeking initial
registration, as the case may be, and a declaration stating that no changes other than those as mentioned in such
details have taken place.
(4) The application for permanent registration made under sub-regulation (1) shall be dealt with in the same
manner as if, it were a fresh application for grant of a certificate of initial registration.
(5) The Board, on being satisfied that the applicant is eligible, shall send intimation to that effect, to the
applicant and shall grant a certificate of permanent registration in the format as specified in Schedule I.
(6) The grant of certificate of permanent registration shall be subject to payment of such fees and in such manner
as specified in Schedule II of these regulations.”
KRA to abide by code of conduct
10. The KRA holding a certificate of registration shall at all times abide by the Code of Conduct
as specified in Schedule III of these regulations.
12. 18[***]
17
The words “initial or permanent” omitted by the Securities and Exchange Board of India (Change In Conditions
Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
18
Omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to omission regulation 12 read as under:
“Effect of refusal to grant certificate of permanent registration
12. A KRA whose application for grant of certificate of permanent registration has been refused by the Board,
on and from the date of the receipt of the communication, shall cease to carry on any activity as a KRA;
Provided that the Board may, in the interest of the investors of the securities market, permit KRA to carry on
activities undertaken prior to the receipt of the intimation of refusal subject to such condition as the Board
may specify.”
b. redressal of investor grievances;
c. transfer of records of its clients;
d. the arrangements made by it for ensuring continuity of service to the clients;
e. defaults or pending action, if any.
(3) While accepting the surrender, the Board may impose such conditions upon the KRA, as it
deems fit, for protection of the interests of investors and the securities market, and such person
shall comply with such conditions.
(4) On and from the date of the surrender or cancellation of the certificate, the KRA shall-
(a) return the certificate of registration so cancelled to the Board and shall not represent itself to
be a holder of the certificate for carrying out the activity for which such certificate had been
granted;
(b) cease to carry on any activity in respect of which the certificate had been granted;
(c) transfer its activities to another entity holding a valid certificate of registration to carry on
such activity and allow its clients to withdraw any assignment given to it, without any additional
cost to such client;
(d) make provisions as regards liability incurred or assumed by it;
(e) take such other action including the action relating to any records or documents that may be
in custody or control of such person, within the time period and in the manner, as may be required
under the these regulations, or as may be directed by the Board.
CHAPTER III
FUNCTIONS AND OBLIGATIONS OF KRA AND INTERMEDIARY
Documents to be obtained by the KRA for the purpose of KYC
14. The KRA shall obtain the KYC documents of the client from the intermediary 19[***] in
terms of the rules, regulations, guidelines and circulars issued by the Board or any other authority
for Prevention of Money Laundering, from time to time.
19
The words and symbols “; as prescribed by the Board and” omitted by the Securities and Exchange Board of India
{KYC (Know Your Client) Registration Agency} (Amendment) Regulations, 2022, w.e.f. 28-01-2022.
(c) KRA shall have a secure data transmission link with other KRA(s) and with each intermediary
that uploads the KYC documents on its system and relies upon its data.
(d) KRA shall be responsible for storing, safeguarding and retrieving the KYC documents and
submit to the Board or any other statutory authority as and when required.
20
[(da) KRA shall carry out an independent validation of the KYC records uploaded onto its
system by the intermediary in such a manner as specified by the Board from time to time.]
(e) KRA shall retain the 21[***] KYC documents of the client, in 22[***] electronic form for the
period specified by 23[rules made under the Prevention of Money Laundering Act, 2002 (15 of
2003)], as well as ensuring that retrieval of KYC information is facilitated within stipulated time
period.
(f) Any information updated about a client shall be disseminated by KRA to all intermediaries
that avail of the services of the KRA in respect of that client.
(g) KRA shall ensure that the integrity of the automatic data processing systems for electronic
records is maintained at all times.
(h) KRA shall take all precautions necessary to ensure that the KYC documents/records are not
lost, destroyed or tampered with and that sufficient back up of electronic records is available at
all times at a different place.
(i) KRA shall have adequate mechanisms for the purposes of reviewing, monitoring and
evaluating its controls, systems, procedures and safeguards.
(j) KRA shall cause an audit of its controls, systems, procedures and safeguards to be carried out
periodically and take corrective actions for deficiencies, if any and report to Board.
(k) KRA shall take all reasonable measures to prevent unauthorized access to its database and
have audit of its systems and procedures at regular intervals 24[as specified by the Board from
time to time].
(l) KRA shall have checks built in its system so that an intermediary can access the information
only for the clients who approach him.
(m)KRA shall appoint a compliance officer who shall be responsible for monitoring the
compliance of the Act, rules and regulations, notifications, guidelines, instructions, etc., issued
by the Board or the Central Government and for redressal of client’s grievances. The compliance
officer shall immediately and independently report to the Board any non-compliance observed
by him.
20
Inserted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
21
Omitted by SEBI {KYC (Know Your Client) Registration Agency} (Amendment) Regulations, 2013 w.e.f. 22-
03-2013.
22
ibid.
23
The word “Rules” substituted with “rules made under the Prevention of Money Laundering Act, 2002 (15 of
2003)” by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
24
The words “as prescribed by the Board” substituted with “as specified by the Board from time to time” by the
Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} (Amendment)
Regulations, 2022, w.e.f. 28-01-2022.
(n) KRA shall send a letter to each client after receipt of the KYC documents from the
intermediary, confirming the client’s details thereof.
(o) KRA shall take adequate steps for redressal of the grievances of the clients within one month
of the date of receipt of the complaint and keep the Board informed about the number, nature
and other particulars of the complaints from such investors.
25
[(p) KRA shall maintain an audit trail of any upload/ modification /download regarding the
KYC records of each client.]
25
Inserted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
26
Substituted by the SEBI {KYC(Know Your Client) Registration Agency} (Amendment) Regulations, 2013 w.e.f.
22-03-2013 for the following:
(a) The intermediary shall perform the initial KYC/due diligence of the client, shall upload the KYC information
on the system of the KRA and send the original KYC documents to KRA forthwith from the date of account opening
or within the time as prescribed by the board from time to time. However, in case of mutual funds, an RTA appointed
by the mutual fund may also undertake the KYC of the client and send the original documents to the mutual fund
or KRA.
27
Inserted by the SEBI {KYC(Know Your Client) Registration Agency} (Amendment) Regulations, 2013 w.e.f.
22-03-2013
28
Substituted by the SEBI {KYC(Know Your Client) Registration Agency} (Amendment) Regulations, 2014 w.e.f.
13-03-2014 for the following:
(b) When the client approaches another intermediary subsequently, it will be optional for the intermediary to verify
and download the client’s details from the system of KRA or to take fresh KYC as per existing system. However,
upon receipt of information on change in KYC details and status of the clients by the intermediary or when it comes
to the knowledge of the intermediary, at any stage, the intermediary shall be responsible for uploading the updated
information on the system of KRA and 28[retaining the physical documents].
(c) An intermediary shall not use the KYC data of a client obtained from the KRA for purposes
other than it is meant for; nor shall it make any commercial gain by sharing the same with any
third party including its affiliates or associates.
(d) The intermediary shall have the ultimate responsibility for the KYC of its clients, by
undertaking enhanced KYC measures commensurate with the risk profile of its clients.
29
[(e) The intermediary shall integrate its systems with the KRA to facilitate seamless movement
of KYC documents to and from the intermediary to the KRA.]
31
[Dispute Resolution.
16B. All claims, differences or disputes between a KRA and an Intermediary arising out of or in
relation to the activities of the KRA in the securities market shall be submitted to a dispute
resolution mechanism that includes mediation and/or conciliation and/or arbitration, in
accordance with the procedure specified by the Board.]
32
[Grievance Redressal Mechanism.
16C. (1) The KRA shall redress investor grievances promptly but not later than twenty-one
calendar days from the date of receipt of the grievance and in such manner as may be specified
by the Board.
(2) The Board may also recognize a body corporate for handling and monitoring the process of
grievance redressal within such time and in such manner as may be specified.]
29
Inserted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
30
Inserted by the SEBI {KYC (Know Your Client) Registration Agency} (Second Amendment) Regulations, 2014,
w.e.f. 11-8-2014.
31
Inserted by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism)
(Amendment) Regulations, 2023, w.e.f., 04-07-2023.
32
Inserted by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism)
(Amendment) Regulations, 2023 w.e.f. 18-08-2023.
Power of the Board to issue clarifications
17. In order to remove any difficulties in the application or interpretation of these regulations,
the Board shall have the power to issue clarifications and guidelines in the form of notes or
circulars which shall be binding on the KRA and the intermediaries.
CHAPTER IV
INSPECTION of KRA
Board's right to inspect
18. (1) The Board may appoint one or more persons as inspecting authority to undertake
inspection of the books of accounts, records, documents, infrastructure, systems and procedures,
of a KRA, for any purpose specified in sub-regulation (2).
(2) The Board may inspect a KRA for the following purposes:
(a) that the books of accounts, records and KYC documents, 33[as specified by the Board from
time to time], are being maintained by the KRA;
(b) to look into the complaints received by the KRA from clients or any other person;
(c) to ascertain whether the provisions of the Act and these regulations are being complied with;
(d) to ascertain whether the systems, procedures and safeguards being followed by a KRA are
adequate;
(e) to ensure that privacy of clients’ data is maintained and the same is not shared with any other
agency/associates in violation of these regulations;
(f) to ensure that the affairs of a KRA are being conducted in a manner which are in the interest
of the investors and securities market.
33
The words “as prescribed by the Board” substituted with “as specified by the Board from time to time” by the
Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} (Amendment)
Regulations, 2022, w.e.f. 28-01-2022.
20. (1) It shall be the duty of the KRA whose affairs are being inspected, and of every director,
officer and employee thereof, to produce to the inspecting authority such books, accounts,
records and other documents in its custody or control and furnish him with such statements and
information relating to its activities as a KRA, within such reasonable period as the inspecting
authority may require.
(2) The KRA shall allow the inspecting authority to have reasonable access to the premises
occupied by it or by any other person on their behalf and also extend reasonable facility for
examining any books, records, documents and computer data in the possession of the KRA or
any other person on their behalf and also provide copies of the documents or other materials
which, in the opinion of the inspecting authority are relevant for the purposes of the inspection.
(3) The inspecting authority, in the course of inspection, shall be entitled to examine or to record
the statements of any director, officer or employee of the KRA.
(4) It shall be the duty of every director, officer or employee of the KRA to give to the inspecting
authority all assistance in connection with the inspection, which the inspecting authority may
reasonably require.
Appointment of Auditor
24. (1) The Board shall have the power to appoint a qualified independent auditor to inspect, into
the books of accounts, records, documents, infrastructures, systems and procedures of a KRA.
(2) The Board shall be entitled to recover from the KRA such expenses including fees paid to
the auditors, as may be incurred by it for the purposes of inspecting the books of accounts,
records, documents, infrastructures, systems and procedures of the KRA.
CHAPTER V
PROCEDURE FOR ACTION IN CASE OF DEFAULT
Liability for action in case of default
25. A KRA shall be liable for action if it –
(a) contravenes any of the provisions of the Act, and these regulations;
(b) fails to furnish any information relating to its activity as a KRA as required under these
regulations;
(c) does not co-operate in any inspection or investigation or enquiry conducted by the Board;
(d) fails to comply with any direction of the Board;
(e) fails to pay the requisite fees to the Board;
and shall be dealt with in the manner provided under the Chapter V of the Intermediaries
Regulations.
34
[CHAPTER VI
26. (1) The Board may, exempt any person or class of persons from the operation of all or any
of the provisions of these regulations for a period as may be specified but not exceeding twelve
months, for furthering innovation 35[***] relating to testing new products, processes, services,
business models, etc. in live environment of regulatory sandbox in the securities markets.
(2) Any exemption granted by the Board under sub-regulation (1) shall be subject to the applicant
satisfying such conditions as may be specified by the Board including conditions to be complied
with on a continuous basis.
Explanation. — For the purposes of these regulations, "regulatory sandbox" means a live testing
environment where new products, processes, services, business models, etc. may be deployed on
a limited set of eligible customers for a specified period of time, for furthering innovation in the
securities market, subject to such conditions as may be specified by the Board.]
34
Inserted by the SEBI (Regulatory Sandbox) (Amendment) Regulations, 2020, w.e.f. 17-04-2020.
35
The words “in technological aspects” omitted by the Securities and Exchange Board of India (Regulatory
Sandbox) (Amendment) Regulations, 2021, w.e.f. 03-08-2021.
SCHEDULE I
SECURITIES AND EXCHANGE BOARD OF INDIA
{KYC (KNOW YOUR CLIENT) REGISTRATION AGENCY} REGULATIONS, 2011
[Regulation 3]
FORM A
Application for grant of certificate of 36[***] registration
INSTRUCTIONS FOR FILLING UP FORM –
1. Applicants must submit to the Board a completed application form together with appropriate
supporting documents and applicable application fees. Supporting documents should be attested
as true by a notary public.
2. This application form should be filled in accordance with the regulations.
3. Application for registration will be considered, only if it is complete in all respects.
4. All answers must be typed.
5. Information which needs to be supplied in more detail may be given on separate sheets which
should be attached to the application form.
6. All signatures on the application must be original.
7. Every page of the form as well as every additional sheet must be initialed by the authorised
signatory of the applicant.
Part I
1. General details of the applicant and its affiliates: Management Compliance
Matrix/Structure
1.1. Name of the applicant:
1.2. Address of the registered office, address for correspondence, telephone numbers, fax
numbers, e-mail, website, name and telephone number of the contact person, address of branch
office, if any:
1.3. Date and place of incorporation/establishment and registration number given by the
Registrar of Companies or any other authority:
1.4. Legal status of the applicant and the law, under which it is incorporated, established or
registered, if any including where the applicant is a listed entity, the details of the exchanges
(whether in India or abroad) where the applicant is listed:
1.5. Brief description of the principal activity of the applicant: (along with copies of the
constitutional documents of the applicant)
36
The words “initial or permanent” Omitted by the Securities and Exchange Board of India (Change In Conditions
Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
1.6. Year of commencement of such activities ( if applicable):
1.7. Shareholding pattern of the applicant (please set out the names of all such persons who hold
whether directly or indirectly more than 5% of the shareholding or voting rights in the company):
Name of the shareholder No. of Shares [% of shareholding] / [% of
voting rights]
FORM B
SECURITIES AND EXCHANGE BOARD OF INDIA
{KYC (KNOW YOUR CLIENT) REGISTRATION AGENCY} REGULATIONS, 2011
37
Inserted by the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency}
(Amendment) Regulations, 2022, w.e.f. 28-01-2022.
[Regulations 7 38[***]]
Certificate of Registration
I. In exercise of the powers conferred by sub-section (1A) of section 12 of the Securities and
Exchange Board of India Act, 1992, read with the regulations made thereunder the Board hereby
grants an 39[***] certificate of registration to _________________________________
as a KYC Registration Agency, subject to the conditions specified in the Act and in the
regulations made thereunder.
II. Registration Number for the KYC Registration Agency is IN/....../……./…..../....
III. 40[This certificate of registration shall be valid unless it is suspended or cancelled by the
Board.]
Date:
Place: Mumbai
By Order
For and on behalf of
Securities and Exchange Board of India
Authorised Signatory
SCHEDULE II
PAYMENT OF FEES
SECURITIES AND EXCHANGE BOARD OF INDIA (KYC REGISTRATION
AGENCY)
REGULATIONS, 2011
[Regulations 7 41[***] ]
PART A
38
The words “and 8” Omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration
Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
39
The words “initial/permanent” omitted by the Securities and Exchange Board of India (Change In Conditions Of
Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
40
Substituted by the Securities and Exchange Board of India (Change In Conditions Of Registration Of Certain
Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016. Prior to substitution paragraph III read as under:
“III.This certificate of registration shall be valid from …. to …./ for permanent , unless suspended or cancelled by
the Board.”
41
The words “and 8” omitted by the Securities and Exchange Board of India (Change In Conditions Of Registration
Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
APPLICATION FEES, REGISTRATION FEES AND ANNUAL FEES
S.N Amount in Rupees
PART B
Manner of Payment of Application, Registration and Annual Fees
Fees to be paid by KRA
Manner of payment –43 [The fees shall be paid by way of direct credit in the bank account
through NEFT/RTGS/IMPS 44[ or online payment using the SEBI Payment Gateway or any other
mode as may be specified by the Board from time to time.]
The application fee referred to in Part A shall be paid at the time of filing application. The
registration fee referred to in Part A shall be paid by the KRA within fifteen days from the date
of receipt of intimation from the Board. The Annual fee shall be paid within 30 days of the end
of the financial year.
SCHEDULE - III
CODE OF CONDUCT
SECURITIES AND EXCHANGE BOARD OF INDIA {KYC (KNOW YOUR CLIENT)
REGISTRATION AGENCY} REGULATIONS, 2011
[Regulation 10]
1. A KRA shall make all efforts to protect the interest of its clients.
2. A KRA shall maintain high standards of integrity, dignity and fairness in the conduct of its
42
The words “initial and permanent” omitted by the Securities and Exchange Board of India (Change In Conditions
Of Registration Of Certain Intermediaries) (Amendment) Regulations, 2016 w.e.f. 08-12-2016.
43
Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6-3-2017.
44
Substituted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023, w.e.f
01-04-2023 for the words “*[or any other mode allowed by RBI or by] demand draft or bankers cheque payable to
the "Securities and Exchange Board of India" at Mumbai or at the respective regional office.”
*[Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6-3-2017.]
business.
3. A KRA shall fulfill its obligations in a prompt, ethical and professional manner.
4. A KRA shall at all times exercise due diligence, ensure proper care and exercise independent
professional judgment.
5. A KRA shall ensure that any change in registration status/any penal action taken by Board or
any material change in financial position which may adversely affect the interests of clients is
promptly displayed on its website.
6. A KRA shall not divulge to anybody either orally or in writing, directly or indirectly, any
confidential information about the clients which has come to its knowledge, without taking prior
permission of its clients, except where such disclosures are required to be made in compliance
with any law for the time being in force.
7. A KRA shall not indulge in any unfair competition.
8. A KRA shall display on its website adequate and appropriate information about its business,
including contact details of persons and services available to clients.
9. A KRA shall ensure that grievances of clients are redressed in a timely and appropriate
manner;
10. A KRA shall make reasonable efforts to avoid misrepresentation and ensure that the
information provided to the clients and intermediaries is not misleading.
11. A KRA shall abide by the provisions of the Act and the rules, regulations issued by the
Government and the Board, from time to time, as may be applicable.
12. A KRA shall not make untrue statement or suppress any material fact in any documents,
reports, papers or information furnished to the Board.
13. A KRA shall ensure that the Board is promptly informed about any action, legal proceeding,
etc., initiated against it in respect of any material breach or non-compliance by it, of any law,
rules, regulations and directions of the Board or of any other regulatory body.
14. (a) A KRA or any of his employees shall not render, directly or indirectly, any investment
advice about any security in the publicly accessible media.
(b) A KRA shall not make a recommendation to any client who might be expected to rely thereon
to acquire, dispose of or retain any securities.
15. A KRA shall ensure that any person it employs or appoints to conduct business is fit and
proper and otherwise qualified to act, in the capacity so employed or appointed including having
relevant professional training or experience.
16. A KRA shall have internal control procedures and financial and operational capabilities
which can be reasonably expected to protect its operations, its clients from financial loss arising
from theft, fraud, and other dishonest acts, professional misconduct or omissions.
17. A KRA shall be responsible for the acts or omissions of its employees in respect to the
conduct of its business.
18. A KRA shall provide adequate freedom and powers to its compliance officer for the effective
discharge of its duties.
19. A KRA shall ensure that the senior management, particularly decision makers have access
to all relevant information about the business on a timely basis.
20. A KRA shall ensure that good corporate policies and corporate governance are in place.
21. A KRA should have adequately trained staff and arrangements to render fair, prompt and
competence services to its clients.
22. A KRA shall develop its own internal code of conduct for governing its internal operations
and laying down its standards of appropriate conduct for its employees and officers in the
carrying out of their duties. Such a code may extend to the maintenance of professional
excellence and standards, integrity, confidentiality, objectivity, avoidance of conflict of interests,
disclosure of shareholdings and interests, etc.
23. A KRA shall not be party to—
(a) creation of false market;
(b) price rigging or manipulation;
(c) passing of unpublished price sensitive information in respect of securities which are listed
and proposed to be listed in any stock exchange to any person or intermediary.
24. A KRA shall maintain proper inward and outward system for all types of mail received and
dispatched in all forms.
25. A KRA shall follow maker-checker concept in its activities to ensure accuracy of data.
26. A KRA shall not indulge in manipulative, fraudulent practices in the process of identification,
verification and updation of a Client’s KYC information with a view to distort market
equilibrium or making personal gains.
U. K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA