SEBI Mandates KYC Registration Agencies to Publish Investor Charter on their Websites [Read Circular]
SEBI mandates all KYC Registration Agencies to publish an Investor Charter on their websites to enhance investor awareness and transparency
![SEBI Mandates KYC Registration Agencies to Publish Investor Charter on their Websites [Read Circular]](https://www.taxscan.in/wp-content/uploads/2025/05/SEBI-SEBI-registration-SEBI-Registration-for-Bankers-bankers-to-an-issue-taxscan.jpg "SEBI Mandates KYC Registration Agencies to Publish Investor Charter on their Websites [Read Circular]")
The Securities and Exchange Board of India (SEBI) has issued a new circular requiring all KYC (Know Your Client) Registration Agencies (KRAs) to prominently publish an Investor Charter on their official websites and at their office premises. According to the circular, the Investor Charter has been specifically designed to inform and educate investors about key aspects such...
The Securities and Exchange Board of India (SEBI) has issued a new circular requiring all KYC (Know Your Client) Registration Agencies (KRAs) to prominently publish an Investor Charter on their official websites and at their office premises.
According to the circular, the Investor Charter has been specifically designed to inform and educate investors about key aspects such as:
- Services offered by KRAs
- Rights and responsibilities of investors
- Do’s and Don’ts to ensure compliance
- Detailed grievance redressal mechanisms
KRAs have been instructed to make the charter easily accessible through digital channels such as email and their websites, as well as in physical form at prominent office locations.
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Key Provisions of the Investor Charter
The Investor Charter, annexed with the circular, emphasizes the role of KRAs as centralized repositories of KYC data, focused on secure and efficient handling of investor information. Key features include:
- Real-time KYC status tracking
- Centralized KYC registration and modification
- Prompt alert mechanisms via SMS/email
- Verification of investor data with official databases
- Clear categorization of KYC status as Validated, Registered, or On-Hold/Rejected
Investors will also have access to updated privacy policies and will be able to initiate KYC modifications or delink their records through SEBI-registered intermediaries.
Grievance Redressal Framework Strengthened
To ensure investor protection, SEBI has laid out a three-tier grievance redressal framework:
- Direct Complaint to KRA – Response required within 21 days.
- Escalation via SCORES – SEBI’s centralized online complaint platform.
- Online Dispute Resolution – Through the SMART ODR portal (smartodr.in) in case of unresolved grievances.
The circular was issued under Section 11(1) of the SEBI Act, 1992, granting SEBI the authority to protect investor interests and regulate market activities. The directive is effective immediately.
To Read the full text of the Circular CLICK HERE
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