The Securities and Exchange Board of India (“SEBI”) in a Circular dated 10th March 2021 has issued the Roll out for Legal Entity Template.
Key Highlights-
• Central KYC Records Registry (“CKYCR”), earlier has specified that since CKYCR is fully operational for individual clients, it has been decided to extend CKYCR to Legal Entities (“LE)” as well. Hence, Registered Intermediaries (“RIs”) will be required to upload the KYC records of LE Accounts opened on or after April 01, 2021 on to CKYCR in accordance with Rule 9 (1A) of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005.
• The LE template is made available in the CKYCR test environment (https://testbed.ckycindia.in/ckyc/index.php) enabling RIs to develop necessary infrastructure.
• RIs will be required to ensure that in the event LE accounts opened prior to April 1, 2021, the KYC records are uploaded on to CKYCR when the updated KYC information is obtained / received from the client. RIs to ensure that during such receipt of updated information, the client KYC details are migrated to current Client Due Diligence (CDD) standards.
• Further, to ensure that all existing KYC records of individual clients are incrementally uploaded on to CKYCR, RIs will be required to upload the KYC records pertaining to accounts of individuals opened prior to August 01, 2016,as and when updated KYC information is obtained/received from the client.
• In the event, a client submits a KYC Identifier to a RI, with a view to download records from CKYCR, then such RI will retrieve the KYC records online from CKYCR. The Client will not be required to submit the same KYC records or information or any other additional identification documents or details, unless there is a change in the information of the client existing in the records of CKYCR.
• Once KYC Identifier is generated by CKYCR, the RIs will ensure that the same is communicated to the individual / legal entity.
Note- The Roll out for Legal Entity Template is not applicable to Foreign Portfolio Investors (“FPIs”).
Background-
SEBI in a Circular dated 21st July 2016 on Operationalization of Central KYC Records Registry (“CKYCR”) directed the RIs to upload the KYC records with CKYCR, in respect of all individual accounts opened on or after 1st August, 2016.
Source: Securities and Exchange Board of India
