TaxTMI 
TaxTMI 
Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration.
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....der to the Board, duly satisfying the Board, about the factors, as it deems fit, including but not limited to : • The arrangements made by KRA for maintenance and preservation of records and other documents required to be maintained under these regulations; • Transfer of records of its clients; • The arrangements made by it for ensuring continuity of service to the clients; • Redressal of investor grievances; • Defaults or pending action, if any. 1.2. In this context, based on the inputs received from the stakeholders, it is decided that the process for surrender of KRA registration should be streamlined for voluntary/involuntary scenarios so that critical operations and se....
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....ons and services of the Transferor KRA to be transferred to Transferee KRA ensuring continuity and protection of KYC data of investor and registered intermediaries, settlement of contractual and statutory obligations and avoidance of disruption in the securities market. The SOP should specify, the operational modalities relating to transfer of records, data, documents etc. in detail, duly considering interoperable as well as non-interoperable scenarios, as applicable. 3.3. Considering KRAs are interoperable, to ensure the portability of KYC records, the SOP shall be uniform and mutually agreed upon amongst KRAs. Model SOP in this regard is provided at Annexure A 4. Oversight for Winding Down : 4.1. KRA surrendering its certificate ....
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....bi.gov.in under the link "Legal --- Circulars". Yours faithfully, Sapna Sinha Deputy General Manager Tel. No. 022-26449748 [email protected] Encl.: As above ANNEXURE A - MODEL STANDARD OPERATING PROCEDURE (SOP) 1. Selection of Transferee KRA: 1.1. The KRA intending to surrender its certificate of registration shall disclose details pertains to its KRA operations and services such as number of KYC records, infrastructure, employees, contractual agreements/obligation and other relevant information to all other KRAs, communicating its intention to wind down its critical operations and services. 1.2. Transferee KRA may be identified through transparent process such as inviting interest from other KRAs. The procedu....
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.... communication to the existing KYC holders clearly informing them the name of the Transferee KRA and the timeline for transfer of such records. A public notice in national & regional dailies should also be published. 2.5. Transferor KRA shall declare a cut-off date in the notice indicating date from which critical operations of Transferor KRA are being taken over by the Transferee KRA. No new records in the system of Transferor KRA would be created after said cut-off date. 2.6. Transferor KRA should provide sufficient time and opportunity to registered intermediaries integrated with it, to shift their integration to any other KRA, if intermediaries so desired. 2.7. Transferor KRA shall perform audit of its KYC records to ensure com....
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....is period Transferor KRA should extend all technical and operational support to Transferee KRA. 2.14. SOP so disclosed on the website of KRAs shall also provide timeline for deactivation of website, system access and shut down of front end API. 2.15. Transferor KRA and Transferee KRA shall ensure that intermediaries integrated with Transferor KRA continue to access KRA records. Suitable clause to this effect may be incorporated in their operation transfer agreement. 2.16. Transferor KRA shall settle regulatory dues, contractual obligations with intermediaries, service providers, and investor complaints before exit. 2.17. Transferor KRA should continue to operate investor support desk for a period of twelve months post approval o....