SEBI Directs KRAs to Display Investor Charter for Transparency

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  • Last Updated on 8 May, 2025

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Investor Charter for KRAs

Circular No. SEBI/HO/MIRSD/PODFATF/P/CIR/2025/62, Dated: 06.05.2025

1. Regulatory Directive

The Securities and Exchange Board of India (SEBI) has issued a directive mandating all KYC Registration Agencies (KRAs) to publish an Investor Charter on their respective websites and also display it at prominent places within their office premises. This move is aimed at promoting greater transparency and awareness among investors.

2. Content of the Investor Charter

The Investor Charter is a comprehensive document designed to empower and inform investors. As per SEBI’s instructions, the Charter for KRAs must include the following components –

  • List of Services Provided to Investors – An outline of the services that KRAs offer, including KYC processing, data verification, and maintenance of KYC records.
  • Rights of Investors – Information about the rights investors are entitled to under the SEBI framework when interacting with KRAs.
  • Key Activities of KRAs – An overview of the core responsibilities and processes undertaken by KRAs.
  • Dos and Don’ts for Investors – Guidelines to help investors act prudently while ensuring their KYC details are safe and accurate.
  • Grievance Redressal Mechanism – The procedure for raising and resolving complaints related to KYC services, including contact information and escalation channels.

3. Additional Disclosure Requirements

This directive is in addition to the existing disclosure obligations already prescribed by SEBI for KRAs. The initiative forms part of SEBI’s broader agenda to strengthen investor protection, enhance accountability, and build trust in the financial market ecosystem.

4. Implications

KRAs are now required to –

  • Update their websites with the prescribed Investor Charter
  • Display physical copies at visible locations within all office branches
  • Ensure that the information is accurate, accessible, and up to date

5. Conclusion

With this directive, SEBI reaffirms its commitment to investor protection and regulatory transparency. Investors are encouraged to read the Investor Charter carefully to better understand their rights, responsibilities, and the services offered by KRAs.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied