Uniform Know Your Client (KYC) Requirements for the Securities Markets

CIRCULAR

MIRSD/SE/Cir-21/2011                                                                                       

October 5, 2011

SEBI Registered Intermediaries – 

Depository Participants (DPs) through Depositories, 

Mutual Funds (MFs) 

Association of Mutual Funds in India (AMFI)

Portfolio Managers (PMs), 

Collective Investment Schemes (CIS) 

Venture Capital Funds (VCFs) 

Dear Sirs,

Subject: Uniform Know Your Client (KYC) Requirements for the Securities Markets

1. SEBI has been getting feedback from the investors that various SEBI registered intermediaries follow different KYC requirements.

2. In case of Mutual Funds, Portfolio Managers, Collective Investment Schemes and Venture Capital Funds, though certain basic requirements have been prescribed for Customer Due Diligence (CDD) or Know Your Client (KYC), no specific KYC format has been prescribed. As a result, these intermediaries use different KYC formats and supporting documents.

3. SEBI has recently initiated steps in this direction in consultation with major stock exchanges, depositories, AMFI and market participants. In case of stock brokers (and also for the stock brokers who are depository participants), the account opening process for investors has been simplified vide SEBI Circular No. CIR/MIRAD/16/2011 dated August 22, 2011 (available on SEBI website), KYC form capturing the basic details about the client has been prescribed as Part I of the account opening form and additional information specific to dealing in the stock exchange(s) are obtained in Part II of the form.

4. With a view to bring about uniformity in securities markets, it has also been decided that the same KYC form and supporting documents shall also be used by all captioned SEBI registered intermediaries. The KYC form as given in Annexure-1 shall be filled by an investor at the account opening stage while dealing with any of the above intermediaries. Additional details specific to the area of activity of the intermediary being obtained now but not covered in the KYC form shall also be obtained from the investors in Part II of the account opening form.

5. The additional information (Part II) shall be prescribed by Depositories for their depository participants and by Association of Mutual Funds in India (AMFI) for all mutual funds. The Portfolio Managers, Venture Capital Funds, and Collective Investment Schemes shall capture the additional information specific to their area of activities, as considered appropriate by them. The intermediaries shall also continue to abide by Circulars issued by SEBI from time to time for prevention of money laundering.

6. The intermediaries shall take necessary steps to implement this circular and ensure its full compliance in respect of all new clients from January 1, 2012.

7. The Depositories are also directed to bring the provisions of this circular to the notice of their Depository Participants, make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in coordination with each other and verify its compliance through internal audits and inspections.

8. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

Yours faithfully, 

 N. Sahoo

Deputy General Manager

022-26449250 email: [email protected] 

Enclosure: Annexure -1

Annexure – 1

KNOW YOUR CLIENT (KYC) APPLICATION FORM  

For Individuals  Please fill this form in ENGLISH and in BLOCK LETTERS. 

1. Name of the Applicant: ________________________________________________________________
2. Father’s/ Spouse Name: _______________________________________________________________
3. Gender: Male/ Female            b. Marital status: Single/ Married      c. Date of birth: ____________(dd/mm/yyyy) 
4. Nationality: ___________________________           b. Status: Resident Individual/ Non Resident/ Foreign National 
5. PAN: ____________________ b. Unique Identification Number (UID)/ Aadhaar, if any:_______________________
6. Specify the proof of Identity submitted: _______________________________________________________________

B.ADDRESS DETAILS

1. Address for correspondence: ________________________________________________________________________ ________ City/town/village: ___________ Pin Code: __________ State: ______________ Country: _________________
2. Contact Details: (Off.) _______ Tel. (Res.) ________ Mobile No.: _________ Fax: _________ Email id: __________
3. Specify the proof of address submitted for correspondence address:_______________________________________
4. Permanent Address (if different from above or overseas address, mandatory for Non-Resident Applicant): ____________ ________ City/town/village: ___________ Pin Code: _________ State: ______________ Country: __________________
5. Specify the proof of address submitted for permanent address: ___________________________________________

C. OTHER DETAILS 

1. Gross Annual Income Details (please specify): Income Range per annum: Below Rs 1 Lac / 1-5 Lac /5-10 Lac / 10-25 Lac / >25 Lacs                    or Net-worth as on (date)…………………. (——————————) (Net worth should not be older than 1 year)
2. Occupation (please tick any one and give brief details): Private Sector/ Public Sector/ Government Service/Business/ Professional/ Agriculturist/ Retired/ Housewife/ Student/ Others ______________________________________________
3. Please tick, if applicable: Politically Exposed Person (PEP)/ Related to a Politically Exposed Person (PEP)
4. Any other information: ______________________________________________________________________________

DECLARATION

I hereby declare that the details furnished above are true and correct to the best of my knowledge and belief and I undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am aware that I may be held liable for it.

__________________                                                                                                                                      

Signature of the Applicant                                                                                                                                                                                                                                                 Date: ___________ (dd/mm/yyyy)

FOR OFFICE USE ONLY

(Originals verified) True copies of documents received 

(Self-Attested) Self Certified Document copies received

(………………………………………..)

Signature of the Authorised Signatory

Date ………………….                                                                                             Seal/Stamp of the intermediary

Page

KNOW YOUR CLIENT (KYC) APPLICATION FORM  

For Non-Individuals  Please fill this form in ENGLISH and in BLOCK LETTERS. 

1. Name of the Applicant: ________________________________________________________________
2. Date of incorporation: _______________(dd/mm/yyyy) & Place of incorporation: ________________
3. Date of commencement of business: ______________________________________________________ (dd/mm/yyyy) 4. PAN: _______________________________ b. Registration No. (e.g. CIN): _________________________________
4. Status (please tick any one):

Private Limited Co./Public Ltd. Co./Body Corporate/Partnership/Trust/Charities/NGO’s/FI/ FII/HUF/AOP/ Bank/Government Body/Non-Government Organization/Defense Establishment/BOI/Society/LLP/ Others (please specify) _______________

B.ADDRESS DETAILS

1. Address for correspondence: ________________________________________________________________________ _________ City/town/village: _____________ Pin Code: _________ State: ______________ Country: _______________
2. Contact Details: (Off.) _______ Tel. (Res.) _______ Mobile No.: ________ Fax: ___________ Email id: __________
3. Specify the proof of address submitted for correspondence address: ______________________________________
4. Registered Address (if different from above): ____________________________________________________________ _________ City/town/village: _____________ Pin Code: _________ State: _____________ Country: ________________
5. Specify the proof of address submitted for registered address: ___________________________________________

C. OTHER DETAILS 

1. Gross Annual Income Details (please specify): Income Range per annum: Below Rs 1 Lac / 1-5 Lac /5-10 Lac / 10-25 Lac / 25 Lacs-1 crore/ > 1 crore
2. Net-worth as on (date) ………….….…. (dd/mm/yyyy): __________________ (*Net worth should not be older than 1 year)
3. Name, PAN, residential address and photographs of Promoters/Partners/Karta/Trustees and whole time directors:_________________________________________________________________________________________________
4. DIN/UID of Promoters/Partners/Karta and whole time directors: ___________________________________________
5. Please tick, if applicable, for any of your authorized signatories/Promoters/Partners/Karta/Trustees/whole time directors: Politically Exposed Person (PEP)/ Related to a Politically Exposed Person (PEP)
6. Any other information: _____________________________________________________________________________

DECLARATION

I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable for it.

_____________________________________                                                                                                                                                      

Name & Signature of the Authorised Signatory                                                                                      

Date: ___________ (dd/mm/yyyy)

FOR OFFICE USE ONLY

 (Originals verified) True copies of documents received 

(Self-Attested) Self Certified Document copies received

(………………………………………..)

Signature of the Authorised Signatory

Date ………………….                                                                                             

Seal/Stamp of the intermediary

INSTRUCTIONS/CHECK LIST FOR FILLING KYC FORM

A. IMPORTANT POINTS:

1. Self attested copy of PAN card is mandatory for all clients, including Promoters/Partners/Karta/Trustees and whole time directors and persons authorized to deal in securities on behalf of company/firm/others.
2. Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the below mentioned list.
3. If any proof of identity or address is in a foreign language, then translation into English is required.
4. Name & address of the applicant mentioned on the KYC form, should match with the documentary proof submitted.
5. If correspondence & permanent address are different, then proofs for both have to be submitted.
6. Sole proprietor must make the application in his individual name & capacity.
7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guidelines), copy of passport/PIO Card/OCI Card and overseas address proof is mandatory.
8. For foreign entities, CIN is optional; and in the absence of DIN no. for the directors, their passport copy should be given.
9. In case of Merchant Navy NRI’s, Mariner’s declaration or certified copy of CDC (Continuous Discharge Certificate) is to be submitted.
10. For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School Leaving Certificate/Mark sheet issued by Higher Secondary Board/Passport of Minor/Birth Certificate must be provided.
11. Politically Exposed Persons (PEP) are defined as individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior Government/judicial/ military officers, senior executives of state owned corporations, important political party officials, etc.

B. Proof of Identity (POI): – List of documents admissible as Proof of Identity:

1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license.
2. PAN card with photograph.
3. Identity card/ document with applicant’s Photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks.

C. Proof of Address (POA): – List of documents admissible as Proof of Address: (*Documents having an expiry date should be valid on the date of submission.) 

1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/ Flat Maintenance bill/ Insurance Copy.
2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill – Not more than 3 months old.
3. Bank Account Statement/Passbook — Not more than 3 months old.
4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts.
5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public/Elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority.
6. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members.
7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken.
8. The proof of address in the name of the spouse may be accepted.

D. Exemptions/clarifications to PAN

(*Sufficient documentary evidence in support of such claims to be collected.) 

1. In case of transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc.
2. Investors residing in the state of Sikkim.
3. UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India.
4. SIP of Mutual Funds upto Rs 50, 000/- p.a.
5. In case of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance Companies registered with IRDA and Public Financial Institution as defined under section 4A of the Companies Act, 1956, Custodians shall verify the PAN card details with the original PAN card and provide duly certified copies of such verified PAN details to the intermediary.

E. List of people authorized to attest the documents:

1. Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or Multinational Foreign Banks (Name, Designation & Seal should be affixed on the copy).
2. In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country where the client resides are permitted to attest the documents.

F. In case of Non-Individuals, additional documents to be obtained from non-individuals, over & above the POI & POA, as mentioned below: