Accreditation Agencies, Which Are Also KRAs, Can Now Access KYC Docs of Applicants Available With Them | SEBI

Circular No. SEBI/HO/AFD/PoD1/CIR/2023/189, Dated 18.12.2023

Earlier, SEBI vide circular dated 26.08.2021 issued framework for accreditation of investors by Accreditation Agencies. Based on the feedback received from various stakeholders, to provide flexibility and facilitate ease of accreditation of investors, SEBI has now decided to simplify the requirements for grant of accreditation to investors.

Accreditation Agencies, which are also KYC Registration Agencies (KRAs), may access Know Your Customer (KYC) documents of applicants available with them in capacity of KRA and may also access the same from the database of other KRAs, for the purpose of accreditation.

Further, the Accreditation agencies shall grant accreditation solely based on the KYC and the financial information of the applicants. To this effect, the accreditation certificate issued by accreditation agencies shall include the following disclaimer:

“The assessment of the applicant for accreditation is solely based on the applicant’s KYC and financial information and does not in any manner exempt market intermediaries and pooled investment vehicles from carrying out necessary due diligence of the accredited investors at the time of on-boarding them as their clients.”

Further, if the applicant meets the eligibility criteria for preceding one financial year, the accreditation certificate issued shall be valid for a period of two years from the date of issuance.

Whereas, if the applicant meets the eligibility criteria in each of the preceding two financial years, the accreditation certificate issued shall be valid for a period of three years from the date of issuance. The provisions of this circular shall come into force with immediate effect.

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