Now Reading: SEBI tightens KYC rules; nominees must be linked directly
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SEBI tightens KYC rules; nominees must be linked directly
Market regulator SEBI has amended KYC rules for stock brokers and depositories, making it mandatory to link nominee details directly to the client’s registration record. The move follows changes to the SEBI…
The Story in Brief
Market regulator SEBI has amended KYC rules for stock brokers and depositories, making it mandatory to link nominee details directly to the client’s registration record. The move follows changes to the SEBI KYC Registration Agency Regulations. Brokers must update their systems to capture nominee information at account opening stage itself.
The circular from BSE says existing clients must also provide or confirm nominee details within a specified period. If no nominee is chosen, the client must explicitly opt out. This tightens the earlier practice where nominee data was often filed separately and not part of the core KYC database.
The Indian Opinion
SEBI’s new KYC rules look like more paperwork for investors already tired of form-filling. But the real story is the regulator trying to plug nominee abuse and ghost accounts. Blaming SEBI for red tape misses the point, most fraud happens because identity checks are weak. The test will be how many dormant accounts get cleaned up in the next quarter. Will compliance costs outweigh investor safety gains?
Source: bseindia.com
This story was synthesised by AI from the source linked above.
