MoF Notification: Applicability of PMLA KYC Provisions to SEBI Intermediaries

According to the sub-clause (ii) of clause (h) of sub-rule (2) of rule 9A under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, the Central Government, after consulting with the Regulator, has decided that certain rules specifically sub-rules (1A), (1C), and (1D) of rule 9 will also apply to a specific group of reporting entities.

These reporting entities are the ones that fall under the term “intermediary,” as defined in the Securities and Exchange Board of India (KYC Registration Agency) Regulations 2011 with the following modifications:

(a) The said reporting entities will have the option to upload KYC records on the Central KYC Records Registry (CKYCRR) directly or through “KYC Registration Agency” (KRA) as defined in clause (h) of subregulation (1) of regulation (2) of the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011; and the KYC information uploaded by a reporting entity with the KRA and subsequently uploaded by the KRA on the CKYCRR will be deemed to be an upload by the reporting entity on the CKYCRR for the purposes of sub-rule (1A) of rule 9;

(b) The additional or updated information in respect of the KYC records uploaded by any such reporting entity with the KRA and subsequently uploaded by the KRA on the CKYCRR will be deemed to be an upload by the reporting entity on the CKYCRR for the purposes of sub-rule (1D) of rule 9 and notification of updates in respect of KYC records by the CKYCRR to the KRAs will be deemed as the CKYCRR informing the reporting entity of the update of such KYC records; and

(c) The said reporting entities may for the purposes of sub-rule (1C) of rule 9, retrieve the KYC records from CKYCRR directly or through KRA.

For complete information refer to the official notification-