Unit study guide · NISM Series III-A
SEBI (KYC Registration Agency) Regulations, 2011
3 questions in this unit
What this unit covers
- What is a core function of a Know Your Client Registration Agency in the securities market?
- What does interoperability between Know Your Client Registration Agencies help an agency determine?
- A client with an existing KRA record approaches a new intermediary. Does that record eliminate the new intermediary’s applicable verification and due-diligence duties?
Key ideas
From the practice bank · 1
What is a core function of a Know Your Client Registration Agency in the securities market?
A KYC Registration Agency stores, safeguards and retrieves KYC records under its regulatory responsibilities. Remember: A KRA supports verified identity records rather than investment performance.
Hint Common mistake: Confusing KYC registration with approval of a client’s investment strategy. Focus on the records needed to identify and verify a client.
III-A-084From the practice bank · 2
What does interoperability between Know Your Client Registration Agencies help an agency determine?
Interoperability helps a KRA determine whether the client’s KYC documents are held by another KRA. Remember: Interoperability supports reuse and discovery of existing KYC records.
Hint Common mistake: Treating each KRA database as an isolated identity system. Think about locating an existing record across connected agencies.
III-A-085From the practice bank · 3
A client with an existing KRA record approaches a new intermediary. Does that record eliminate the new intermediary’s applicable verification and due-diligence duties?
The intermediary must meet its applicable duties even when it verifies and downloads an existing KRA record. Remember: KRA access supports due diligence but does not replace the intermediary’s accountability.
Hint Common mistake: Assuming a stored KYC record removes the need to address changed or doubtful information. Separate access to stored records from the intermediary’s own responsibilities.
III-A-086