May 16, 2024 / 11:48am (IST)
Sensex Today | Signzy CEO Ankit Ratan: SEBI’s KYC decision is a win for investors and compliance
SEBI’s decision to simplify the risk management framework for verifying Know Your Customer (KYC) records through KYC Registration Authorities (KRA) is a positive step that reflects SEBI’s response to stakeholder feedback. This demonstrates the open approach taken by regulators to facilitate trading for investors while ensuring that companies adhere to compliance standards. KRA can now verify his PAN, name, address, email and mobile number from the official database. If these details are found to be correct, it will be considered a verified record.
It is expected to address the challenges faced by many investors while also ensuring verification of investors’ digital identities. As more investors adopt digital platforms for investing, verifying digital identity becomes increasingly important. Mutual fund companies, brokerages, and portfolio management service providers must implement robust compliance tools and risk management frameworks to protect the privacy and security of investor data. This ensures that all investors can participate after verifying their identity.
This move by SEBI will ensure protection of investors’ interests in the capital market and promote the development of the securities market. This represents an important step towards strengthening digital trust and creating a safe digital environment for investors.
