CVL KRA stands for Central Depository Services Limited (CDSL) Ventures Limited – Know Your Customer Registration Agency. Know Your Customer (KYC) has become a mandatory requirement in almost every financial dealing, from bank accounts to insurance policies. It is the compulsory process of identifying and verifying the customer’s (client) identity when opening an account and intermittently as and when required. The purpose is to check the identity of the client and confirm whether they are who they claim to be.
The Securities and Exchange Board of India (SEBI) instructed the usage of uniform KYC by all SEBI registered intermediaries. The KRA regulations of 2011 were issued to ensure that all SEBI-registered intermediaries use a standardized KYC (Know Your Customer Process).
Following this regulation, NSE Data and AnalyticsLimited, a subsidiary of the National Stock Exchange of India, started functioning as a KRA with the approval of SEBI.
It is now mandatory to verify the client through KYC to open a DEMAT account. KRA provides centralized storage; hence, once the KYC is updated, all SEBI-registered intermediaries can access information while dealing with the same client.
According to SEBI, there are six agencies authorized as KRA as of April 17, 2017. They are:
- Central Depository Services Limited (CVL KRA)
- National Securities Depository Limited (NSDL Database Management Limited)
- National Stock Exchange of India Limited (DotEx International Limited)
- Computer Age Management Services Pvt. Ltd. (CAMS KRA)
- Karvy Fintech Private Limited (Karvy KRA)
- Bombay Stock Exchange Technologies Pvt Ltd (BSE KRA)
Step-by-step process for offline KYC registration
Here are the steps to follow for an offline KYC process
- Download the KYC form. You can download the form here: https://kra.ndml.in/kra-web/jsps/menu/Downloads.htm
- Fill in the form with your details. You will require your Aadhaar or PAN to fill out the form
- Visit the nearest KYC registration agency (Search for KRA near me)
- Submit the form along with ID and address proof
- Complete biometrics
- Collect your application number
- Track your application status online
The process is quite simple, and it may take up to 7 days to get verified
Step-by-step process for online KYC registration
There are two ways to complete your online KYC registration
- Aadhaar-based biometric KYC
- Aadhaar based OTP
The aadhaar-based OTP process is easier and can be done within a few minutes. Below are the steps to follow:
- Visit the official website of the KYC Registration Agency
- Login to the website with your registered mobile number
- Enter the OTP received on your mobile
- Upload a self-attested copy of your Aadhaar
- Accept the terms and conditions
This KYC verification can be done within 24 hours. Alternatively, you can try doing KYC with an Aadhaar-based biometric method. Here are the steps to follow:
- Visit the official KRA website
- Follow the same steps as mentioned above
- Select the biometric authentication online version
- An authorized representative will visit the address mentioned in the form
- Show the required original documents and wait for your KYC approval
This process can also finish within 24 hours, unlike the seven days required for the offline method.
How to check the KYC status?
- Visit the KRA website: https://www.nsekra.com/
- Click on the KYC inquiry
- Enter PAN
- Input Captcha
- Click submit to get the status.
KYC Status and Implications
- Validated
It means that KYC has been registered successfully.
- Registered
Clients whose KYC status shows registered have to register their mobile number and email ID in their KRA to get it validated.
- On hold or rejected
It shows that if you have already registered with another intermediary and the details were not updated or mismatched with the previous one.
The purpose of KRA is to bring a unified identification; hence, please keep in mind to use the same credentials throughout.
Recent Developments in SEBI KRA
NSE on August 18, 2023, issued a circular in pursuance of the KYC KRA regulations amendment. The circular demanded taking the following actions:
- Before uploading the client data to Exchange’s database ensure KRA has validated the client’s record. The validation includes the identity, address proof, and other documents
- Make sure to adhere to SEBI circulars and allow any trading activity by a client only after KRA verifies the KYC details
- KRA should maintain all the records of client validation and submit the same for inspection as and when the regulatory authority demands
- KYC registration agencies should regularly communicate with their client about timely KYC updation and its impact on trading activities
Clients whose KYC is not found valid by KRA are not allowed to trade with effect from September 2, 2023, until they comply with the requirement.
FAQs about KRA and KYC
1. Why is KRA required?
Once you undergo the KYC process under any intermediary, you can invest through various intermediaries without undergoing KYC multiple times.
2. Can you register your KYC with multiple KRAs?
The SEBI KRA regulations, 2011 allows an investor to register KYC with any one of the KRA only. Hence, registration with multiple KRA is not allowed.
3. Can you mention a different name (change in spelling or initial)from your PAN while doing KYC registration?
The name of the KYC application should be as mentioned on your PAN card. No changes are acceptable.
4. If you are not an Indian national, do you need to go through extra procedures?
In the nationality, there are two options either Indian or other. If you are an Indian citizen, there is no need to submit extra documents to prove the same. However, if you are a citizen of another country, you should specify it. You need to submit proof of your nationality like a copy of your passport.
5. What are the eligible documents accepted as proof of address?
- Passport/Voter ID/Ration Card/ Lease or sale agreement of residence/Driving Licence/ FlatMaintenance bill/Insurance Copy
- Bank Account statement/ Passbook
- Utility bills (Landline, gas, electricity)
- Self-declaration by Supreme Court or high court judges giving the new address on their account
- Proof of address issued by any of the following: Bank managers of scheduled Commercial Banks/Scheduled Co-operative banks/ Multinational Foreign Banks/ Gazetted officer/Notary Public/ Elected representatives to the Legislative Assembly/Parliament/ Documents issued by any government or statutory authority
- The proof of address in the name of the spouse may be accepted
