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Inauguration of NDML KRA
By
Hon'ble SEBI Chairman Shri U. K. Sinha

NSDL Database Management Limited (NDML), a wholly owned subsidiary of National Securities Depository Limited (NSDL) has established KYC Registration Agency (KRA) pursuant to SEBI {KYC (Know Your Client) Registration Agency (KRA)}, Regulations, 2011. Hon’ble SEBI Chairman Shri U. K. Sinha inaugurated the NDML KRA system today, January 25, 2012 in the presence of Dr. R. H. Patil, Chairman, NSDL & NDML.

KRA is an agency that will maintain KYC records of Investors in physical and electronic form. Earlier, if a client intended to open accounts with different SEBI registered intermediaries (such as stock brokers, depository participants etc.) for the purpose of trading / investment in the securities market, he had to repeat KYC process with each intermediary. Therefore, in order to avoid duplication of KYC process with every intermediary, SEBI has prescribed a mechanism for centralization of the KYC records in the securities market. An intermediary shall perform the initial KYC of its clients and upload the details on the KRA system. When the client approaches another intermediary, that intermediary can verify and download the client’s details from the system of the KRA. As a result, once the client has undergone KYC process with a SEBI registered intermediary, he need not undergo the same process again with another intermediary.

  • Eliminates the need to submit KYC documents each time the investor chooses to deal with another intermediary.
  • In case of change of KYC details (for example, change of address), the investor needs to inform SEBI registered intermediary where he is registered as a client. The intermediary will update the KYC details in KRA system which in turn will communicate these changes to all the intermediaries where this investor is registered as a client. This will eliminate the need for an investor to communicate change in KYC details to each intermediary separately.
  • KYC documents of the Investors remain in the secured custody with the SEBI registered entity i.e KRA.

NSDL Database Management Limited (NDML) is a wholly owned subsidiary of National Securities Depository Limited (NSDL) which is the largest securities depository handling most of the securities held in dematerialized form in India. NDML strives to provide the benefits of technological expertise, physical network and management experience of NSDL to take up large and socially relevant projects of national importance in e-governance space. The projects implemented by NDML include Integrated "SEZ Online System" on behalf of Ministry of Commerce and Industry, Government of India (GoI) for online submission & processing of transactions undertaken at all the SEZ Units, Developers and Co-developers in India; “NDML Payment Services Platform” on behalf of Department of Information Technology, GoI to enable online payment for various citizen centric services offered through government portals and "National Skills Registry" on behalf of NASSCOM which is an information repository of all professionals who work in the IT software and services industry in India.

Dr. R. H. Patil, Chairman, NSDL & NDML
"Establishing KYC Registration Agencies is an important milestone in the development of our capital markets. The investor community will greatly benefit from this move".

Mr. Gagan Rai, Managing Director & CEO, NSDL
"NSDL group has played a pioneering role in transforming the Indian Capital markets and has implemented several socially useful e-governance projects. We are very happy to be associated with this new initiative of SEBI".

Dr. Manoj Vaish, Managing Director & CEO, NDML
"I look forward to a day when the citizens will be required to undertake KYC only once, across financial markets, and the same KYC will be accepted in Banking & Insurance Sector as well".

Registration of Market Intermediaries:
SEBI registered intermediaries who are desirous of registering with NDML KRA are requested to submit duly filled ‘Intermediary Registration’ form, ‘Terms and Conditions’ and the 'User Creation' Forms to KRA at the below mentioned address. The Intermediary registration process and the forms can be downloaded from here.

Place: Mumbai
Date : January 25, 2012