Apr 29, 2020
SEBI eases the Know Your Client (KYC) Process by enabling online KYC, use
of Technology/ App by the registered intermediary
from time to time, taken steps to simplify the process of KYC for investors and
intermediaries. SEBI has allowed the use of technological innovations which can
facilitate online KYC. The use of technology would facilitate the investors to
complete the KYC without the requirement of physically visiting the office of
has enabled the usage of eSign, Digilocker and electronic signature as
permitted by the Government of India under the Information Technology Act, 2000
and the Rules made thereunder. The enablement of eSign, Digilocker and
electronic signature would facilitate investor to submit their Officially Valid
Documents (OVDs) (proof of identity and proof of address), for the purpose of
KYC to the SEBI intermediary’s online / digital platform, App, through e-mail
or electronic means. SEBI has also allowed eSign mechanism for affixing cropped
signature on the KYC form and on the copy of OVD of the investor.
is required to verify the copy of the OVD provided by the investor with the
original OVD. However, for ease of the investor, the OVD shall be deemed to be
seen and verified with the original, where the investor through the eSign
mechanism provides the OVD as a clear photograph/ scanned copy of the original
or provides the same as digitally signed document issued to the DigiLocker by
the issuing authority.
has allowed the investor to complete the KYC process by filling the online KYC
form. The completed online KYC form could be submitted by the investor to the
a. By taking a print out of the completed
KYC form and after affixing their wet signature, send the scanned copy /
photograph of the same to the intermediary under Esign, or
b. Affix online the cropped signature on
the filled KYC form and submit the same to the intermediary under Esign.
has also enabled the implementation of the App by the intermediary, which would
be used for the purpose of online KYC and video in-person verification. The App
shall facilitate taking photograph, scanning, acceptance of OVD through Digilocker,
end-to-end encrypted live audiovisual interaction with the customer, usage of
the App only by authorized person of the RI. The App shall have safety features
including guard against spoofing and such other fraudulent manipulations. The
enablement of usage of App would facilitate the intermediary to undertake KYC in
a seamless, real-time, secured manner as well as save time and money.
enabling usage of technology, the intermediary is also required to verify the
investor mobile number, e-mail id and the bank details (through penny drop) to
cross verify the information provided by the investor.
(SEBI Circular No.SEBI/HO/MIRSD/DOP/CIR/P/2020/73 dated April 24, 2020 may be seen)
April 29, 2020