BSE Technologies, BSE’s subsidiary, has reportedly received approval from capital market regulator SEBI to work as a KRA (KYC Registration Agency). According to Ashishkumar Chauhan, the Chief Executive Officer and MD at BSE, this is a crucial step taken by SEBI to improve the investor faith in the securities market.
SEBI published fresh guidelines for KRAs where such agencies will have to separately validate KYC details of all clients from July 1.
As per the guidelines, KRAs will separately authenticate records of new as well as current clients whose KYC has been completed through Aadhar as an OVD (Officially Valid Document). The records of those clients completing KYS through non-Aadhar OVD will be authenticated only upon obtaining the Aadhar number.
The move comes on the heels of SEBI issuing new regulations to make KRAs accountable for performing separate validation of KYC records uploaded by Registered Intermediaries on the system.
Mr. Chauhan believes that BSE’s extensive experience of 147 years as a leading regulator will aid in assuring that BSE Technologies Pvt Ltd (BTPL) will retain high standards of practices and governance.
It should be noted that KYC KRA has been a crucial segment for investors of securities markets and operates as a starting point for investors throughout their journey in the securities market. KRA is an intermediary regulated by SEBI that grants authorization to market participants for Know Your Client (KYC) of investors that will be compulsory for investments in the securities market.
For the unversed, the Securities and Exchange Board of India (SEBI) was set up as a non-statutory body in 1988 via a Government of India resolution. In 1992, SEBI was named as a statutory body.
On the other hand, BSE Technologies is a leading provider of advanced IT solutions that focus on Banking and Financial Services, and Commodities markets in India.
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