On 20 August, the Securities and Exchange Board of India (SEBI) specified the International Financial Services Centres Authority (IFSCA) to facilitate information sharing between SEBI registered KYC Registration Agencies (KRAs) and entities regulated by IFSCA, enabling interoperability between the KRA system and IFSCA regulated entities.
The circular referred to Regulation 16A(1) of the SEBI KYC Registration Agency Regulations, 2011. The provision allows entities regulated by specified financial sector regulators to access the KRA system for carrying out KYC of their clients.
Accordingly, entities regulated by IFSCA may access the KRA system for undertaking KYC of their clients. SEBI clarified that the provisions of the SEBI KYC Registration Agency Regulations will apply to all such entities accessing the system for this purpose.
Such entities must also comply with the guidelines specified in SEBI's Master Circular on KYC norms for the securities market dated 12 October 2023, as amended from time to time.
For clients registered as Foreign Portfolio Investors (FPIs), entities accessing the KRA system must additionally comply with the “Data Security” guidelines under SEBI's Master Circular dated 30 May 2024 relating to FPIs, Designated Depository Participants and Eligible Foreign Investors.
The circular takes immediate effect.