Enabling sharing of information by KYC KRA with entities regulated by IFSC

SEBI Circular No. HO/38/15/(7)2026-MIRSD-POD/I/19255/2026 dated August 20, 2026, concerning the sharing of KYC information by SEBI-registered KYC Registration Agencies (KRAs) with entities regulated by the International Financial Services Centres Authority (IFSCA).

1. Background and objective

The Circular has been issued to facilitate interoperability and information sharing between SEBI-registered KRAs and entities regulated by IFSCA. The regulatory mechanism is enabled through Regulation 16A of the SEBI (KYC Registration Agency) Regulations, 2011.

Regulation 16A(1) permits entities regulated by other financial-sector regulators, when specified by SEBI, to access the KRA system for undertaking KYC of their clients. SEBI has now formally specified IFSCA for this purpose.

This represents an important step towards creating greater integration between the KYC infrastructure of India's securities market and the financial ecosystem operating within the International Financial Services Centre (IFSC).

2. What has changed?

The principal regulatory change is that IFSCA-regulated entities are now enabled to access the KRA system maintained by SEBI-registered KRAs for undertaking KYC of their clients.

In practical terms, this means that eligible entities regulated by IFSCA can leverage the existing KRA infrastructure rather than having to operate an entirely independent KYC information-gathering mechanism.

The Circular therefore establishes a regulatory bridge between:

SEBI/KRAs → IFSCA-regulated entities → KYC information

This is particularly relevant to the expanding financial-services ecosystem in the IFSC.

3. Applicability of SEBI KRA Regulations

The Circular makes it clear that once an IFSCA-regulated entity accesses the KRA system, the provisions of the SEBI KRA Regulations, 2011 become applicable to such entity.

This is an important compliance consideration.

Access to the KRA database is therefore not merely a facility or technological integration. The accessing entity must comply with the applicable regulatory framework governing the KRA system.

Accordingly, IFSCA-regulated entities intending to use the KRA infrastructure should ensure that their internal KYC processes, systems, controls and personnel are aligned with the applicable requirements.

4. Compliance with SEBI's KYC framework

The Circular specifically requires all entities accessing the KRA system to follow the guidelines contained in SEBI's Master Circular dated October 12, 2023 on KYC norms for the securities market, as amended from time to time.

Therefore, IFSCA-regulated entities cannot treat KRA access as an isolated technical arrangement. Their use of KRA information must be integrated with the applicable KYC compliance framework.

From a compliance perspective, entities should therefore review:

• KYC onboarding procedures;
• KYC verification and validation processes;
• access controls;
• record-keeping arrangements;
• data handling and confidentiality;
• internal controls governing KRA access; and
• compliance monitoring and audit mechanisms.

5. Special requirement for Foreign Portfolio Investors

The Circular contains an additional requirement where the client is registered as a Foreign Portfolio Investor (FPI).

In such cases, entities accessing the KRA system must also comply with the Data Security guidelines contained in SEBI's Master Circular dated May 30, 2024 relating to Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors, as amended from time to time.

This is particularly significant because FPI-related KYC information can involve sensitive financial and identification data.

IFSCA-regulated entities dealing with FPIs should therefore pay particular attention to:

• information-security controls;
• authorised access;
• data protection;
• secure transmission and storage;
• prevention of unauthorised disclosure; and
• monitoring of access to KRA information.

6. Immediate effectiveness

The Circular is effective immediately from August 20, 2026.

Consequently, IFSCA-regulated entities that intend to utilise the KRA system should assess their readiness without waiting for a separate implementation date.

7. Regulatory significance

The Circular is significant beyond its immediate KYC implications.

The IFSC ecosystem is intended to provide a globally oriented financial-services platform, and efficient KYC interoperability is an important component of such an ecosystem. Enabling IFSCA-regulated entities to access the established KRA infrastructure should potentially:

• reduce duplication in KYC processes;
• improve operational efficiency;
• facilitate smoother client onboarding;
• improve consistency of KYC information;
• reduce compliance friction for financial-sector participants; and
• strengthen regulatory coordination between SEBI and IFSCA.

It also reflects a broader movement towards inter-regulatory cooperation and standardisation of financial-sector KYC infrastructure.

8. Impact on IFSCA-regulated entities

From the perspective of an IFSCA-regulated entity, the Circular should be viewed as both an opportunity and a compliance responsibility.

The opportunity lies in being able to access an established KYC repository and potentially streamline client onboarding.

The corresponding responsibility is that such access brings with it the requirement to comply with the relevant SEBI KRA framework and, where applicable, the enhanced data-security requirements for FPIs.

Entities should therefore consider conducting an internal gap assessment covering:

Area	Suggested compliance action
KRA access	Establish appropriate authorised access
KYC processes	Align procedures with SEBI KRA requirements
Internal controls	Define responsibility and approval mechanisms
Data security	Review controls over KRA information
FPI clients	Implement applicable additional data-security requirements
Record keeping	Ensure appropriate maintenance of KYC records
Employee access	Restrict access to authorised personnel
Compliance monitoring	Include KRA usage within periodic compliance reviews

9. Impact on KRAs

For SEBI-registered KRAs, the Circular effectively expands the universe of entities that may access their systems.

KRAs will therefore need to facilitate access by eligible IFSCA-regulated entities in accordance with the regulatory framework, while ensuring appropriate controls around authentication, access, information sharing and data security.

The Circular does not, however, appear from the uploaded document to prescribe a separate operational implementation mechanism or specific technical timeline for KRAs. Such operational requirements may therefore need to be read along with the applicable KRA regulations, master circulars and subsequent directions.

10. Key takeaway for compliance professionals

The most important takeaway is that IFSCA has now been specifically recognised by SEBI under Regulation 16A(1) as a regulator whose regulated entities may access the SEBI KRA system.

However, such access comes with corresponding obligations. The accessing entities must comply with the SEBI KRA Regulations and the applicable SEBI KYC framework, with additional data-security requirements applying in relation to FPI clients.

Conclusion

The August 20, 2026 Circular is a relatively concise regulatory intervention, but its practical significance is considerable. By permitting IFSCA-regulated entities to access SEBI's KRA infrastructure, SEBI has taken a concrete step towards greater harmonisation of KYC processes across India's financial regulatory architecture.

For IFSCA-regulated entities, the immediate priority should be to determine whether they intend to utilise the KRA facility and, if so, ensure that their KYC policies, systems, access controls and data-security framework are capable of meeting the requirements incorporated through the Circular.

In essence, the Circular facilitates interoperability, but interoperability comes with regulatory accountability.

Inoperative accounts/ unclaimed deposits

 RBI circular dated 2/12/2024 which is self explanatory

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12750&Mode=0

A reference is invited to RBI circular DOR.SOG (LEG).REC/64/09.08.024/2023-24 dated January 1, 2024 on the captioned subject. It requires banks, among other things, to undertake an annual review of accounts/ deposits where there are no customer induced transactions for more than a year; segregation in their Core Banking Solution of accounts opened for credit of scholarship amount and/ or Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government Schemes to facilitate credit of DBTs even if such accounts have become inoperative; and take steps to trace the customers of these accounts/ deposits. It also contains operational guidelines for activation of such accounts/ deposits, customer awareness measures such as public awareness and financial literacy campaigns to be undertaken by banks and requires information on the process for activation of such accounts/ deposits to be displayed on the banks’ websites and branches.

2. The Department of Supervision, RBI, recently conducted an analysis, which revealed that the number of inoperative accounts/ unclaimed deposits in several banks was on the higher side vis-a-vis their total deposits as well as in absolute terms. The reasons were attributed to either inactivity for a long time or pending updation/ periodic updation of KYC in such accounts. Reportedly, there were instances of customers facing inconvenience when they approached the bank branches for activation of inoperative accounts including inadvertent errors in customer details such as mismatch in name, etc. It was also observed that a few banks have a large pendency of accounts that are due for updation/ periodic updation of KYC, resulting in such accounts getting frozen for further transactions as per bank’s internal policies.

3. The banks are, therefore, advised to take necessary steps urgently to bring down the number of inoperative/ frozen accounts and make the process of activation of such accounts smoother and hassle free, including by enabling seamless updation of KYC through mobile/internet banking, non-home branches, Video Customer Identification Process, etc. While the accounts of beneficiaries of various Central/ State government schemes like DBT/EBT etc., are required to be segregated to facilitate uninterrupted credit of such DBT/EBT amounts in their accounts, instances have been observed where the accounts of such beneficiaries have been frozen due to other factors such as pending updation/ periodic updation of KYC. Since these accounts mostly pertain to the people from the underprivileged sections of the society, the banks may facilitate the process of activation of accounts by taking an empathetic view in such cases. The banks may also organise special campaigns for facilitating activation of inoperative/ frozen accounts. Besides, the banks may also facilitate Aadhaar updation for customers through the branches providing Aadhaar related services. Instructions have been issued separately to SLBCs to proactively monitor the situation in their respective jurisdictions with a view to minimise customer inconvenience.

4. The progress in reduction of inoperative/ frozen accounts and the special efforts made by the banks in this regard, may be monitored by the Customer Service Committee (CSC) of the Board. In addition, the banks are also advised to report the same on a quarterly basis to the respective Senior Supervisory Manager (SSM) through DAKSH portal, starting from the quarter ending December 31, 2024.

KYC - video verification process

RBI circular dated 9th January, 2020 wherein they have allowed video based customer identification process (CIP) to establish the KYC of the clients being on boarded. Elaborate rules have been laid down for the same purpose, including procedure for carrying out live CIP, software & security audit of the live CIP process, etc. All accounts to be opened under live CIP shall be done only after concurrent audit to ensure robustness of the process.

This is supposed to be ease of doing business, but as we have seen from the past experiences, it becomes anything but that. Increasingly, it is becoming difficult to open a bank a/c inside of 3 weeks from the banks, but yet as we have seen, instances of fraud are being committed by the bank's employees themselves as we have seen in the PNB and PMC Bank fiasco.

RBI circular follows

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11783&Mode=0

Government of India, vide Gazette Notification G.S.R. 582(E) dated August 19, 2019 and Gazette Notification G.S.R. 840(E) dated November 13, 2019, has notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Further, with a view to leveraging the digital channels for Customer Identification Process (CIP) by Regulated Entities (REs), the Reserve Bank has decided to permit Video based Customer Identification Process (V-CIP) as a consent based alternate method of establishing the customer’s identity, for customer onboarding.

2. The consequent changes carried out in the Master Direction on KYC dated February 25, 2016, with the aforementioned amendments to the PML Rules and V-CIP are as under:

A. Changes due to amendments to the PML Rules

a) “Digital KYC” has been defined in Section 3 as capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the Reporting Entity (RE) as per the provisions contained in the Act. Steps to carry out the Digital KYC process have also been stipulated.

b) “Equivalent e-document” has been defined in Section 3 as an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer as per Rule 9 of the Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016.

c) Section 16 has been amended and accordingly,

I. customer, for the purpose of Customer Due Diligence CDD) process, shall submit:

1. the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or he decides to submit his Aadhaar number voluntarily to a banking company or any reporting entity notified under first proviso to sub-section (1) of section 11A of the PML Act; or
2. the proof of possession of Aadhaar number where offline verification can be carried out; or
3. the proof of possession of Aadhaar number where offline verification cannot be carried out or
4. any Officially Valid Document (OVD) or the equivalent e-document thereof containing the details of his identity and address; and
5. the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962; and
6. such other documents including in respect of the nature of business and financial status of the client, or the equivalent e-documents thereof as may be required by the RE.

II. Provided that where the customer has submitted

1. Aadhaar number under paragraph (c.I.i) above to a bank or to a RE notified under first proviso to sub-section (1) of section 11A of the PML Act, such bank or RE shall carry out authentication of the customer’s Aadhaar number using e-KYC authentication facility provided by the Unique Identification Authority of India.
2. proof of possession of Aadhaar under clause (c.I.ii) above where offline verification can be carried out, the RE shall carry out offline verification
3. an equivalent e-document of any OVD, the RE shall verify the digital signature as per the provisions of the Information Technology Act, 2000 (21 of 2000) and any rules issues thereunder and take a live photo as specified under Annex I of the Master Direction.
4. proof of possession of Aadhaar number where offline verification cannot be carried out under clause (c.I.iii) above or any OVD under clause (c.I.iv), the RE shall carry out verification through digital KYC as specified under Annex I of the Master Direction.
   Provided, for a period not beyond such date as may be notified by the Government for a class of REs, instead of carrying out digital KYC, the RE pertaining to such class may obtain a certified copy of the proof of possession of Aadhaar number or the OVD and a recent photograph where an equivalent e-document is not submitted.

III. Equivalent e-document has also been permitted for accounts of non-individual customer.

IV. Where a customer has provided his Aadhaar number under paragraph (c.I.i) above for identification and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Regulated Entity.

B. Changes due to introduction of Video based Customer Identification Process (V-CIP)

a) Definition of V-CIP has been inserted in Section 3 of the Master Direction

b) The process of V-CIP has been specified in Section 18 in terms of which, REs may undertake live V-CIP, to be carried out by an official of the RE, for establishment of an account based relationship with an individual customer, after obtaining his informed consent and shall adhere to the following stipulations:

i. The official of the RE performing the V-CIP shall record video as well as capture photograph of the customer present for identification and obtain the identification information as below:

• Banks: can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
• REs other than banks: can only carry out Offline Verification of Aadhaar for identification.

ii. RE shall capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details shall be verified from the database of the issuing authority.

iii. Live location of the customer (Geotagging) shall be captured to ensure that customer is physically present in India

iv. The official of the RE shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP and the identification details in Aadhaar/PAN shall match with the details provided by the customer.

v. The official of the RE shall ensure that the sequence and/or type of questions during video interactions are varied in order to establish that the interactions are real-time and not pre-recorded.

vi. In case of offline verification of Aadhaar using XML file or Aadhaar Secure QR Code, it shall be ensured that the XML file or QR code generation date is not older than 3 days from the date of carrying out V-CIP.

vii. All accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process.

viii. RE shall ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. RE shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations.

ix. To ensure security, robustness and end to end encryption, the REs shall carry out software and security audit and validation of the V-CIP application before rolling it out.

x. The audiovisual interaction shall be triggered from the domain of the RE itself, and not from third party service provider, if any. The V-CIP process shall be operated by officials specifically trained for this purpose. The activity log along with the credentials of the official performing the V-CIP shall be preserved.

xi. REs shall ensure that the video recording is stored in a safe and secure manner and bears the date and time stamp.

xii. REs are encouraged to take assistance of the latest available technology, including Artificial Intelligence (AI) and face matching technologies, to ensure the integrity of the process as well as the information furnished by the customer. However, the responsibility of customer identification shall rest with the RE.

xiii. RE shall ensure to redact or blackout the Aadhaar number in terms of Section 16.

xiv. BCs can facilitate the process only at the customer end and as already stated in para B(b) above, the official at the other end of V-CIP interaction should necessarily be a bank official. Banks shall maintain the details of the BC assisting the customer, where services of BCs are utilized. The ultimate responsibility for customer due diligence will be with the bank.

3. The Master Direction on KYC dated February 25, 2016, is hereby updated to reflect the above changes and shall come into force with immediate effect.

foreign portfolio investors

Decisions taken at the SEBI board meeting held on 21st August, 2019

Review of SEBI (Foreign Portfolio Investors) Regulations

The Board considered the recommendations of the working group constituted for reviewing the SEBI (Foreign Portfolio Investors) Regulations, 2014 and approved the proposed new set of Regulations.

The key focus of the proposed Regulations is to simplify and rationalize the existing regulatory framework for foreign portfolio investors (FPIs) in terms of easing the operational constraints and compliance requirements. 57 circulars and 183 FAQs pertaining to FPIs issued over the years have been merged into new regulations and a single circular. Some of the key aspects of revised regulations include:

1. To simplify and expedite the registration process and to bring about ease in compliance requirements for FPIs, the broad based eligibility criteria for institutional foreign investors has been done away with.

2. On reviewing the risk profiling of the FPIs, it is decided that the FPIs may be re-categorized into two categories - Category I and II, instead of the present requirement of three categories.

3. Registration for multiple investment manager (MIM) structures has been simplified.

4. Considering that the central banks are relatively long term, low risk investors directly/ indirectly managed by the Government, the central banks that are not the members of BIS (Bank for International Settlement) shall also be eligible for FPI registration.

5. The entities established in the international financial services center (IFSC) be deemed to have met the jurisdiction criteria for FPIs.

6. Documentation requirements for KYC have been simplified.

7. FPIs shall be permitted for off-market transfer of securities which are unlisted, suspended or illiquid, to a domestic or foreign investor.

8. Offshore funds floated by Indian Mutual Funds shall now be permitted to invest in India after obtaining registration as FPI.

9. The requirements for issuance and subscription of Offshore Derivative Instruments (ODIs) have been rationalized.

web based DIR-3-KYC

MCA has vide its notification dated 25th June, 2019 amended the Companies (Appointment and Qualification of Directors), Rules, 2014 as follows:

1) a new system of web based DIR-3-KYC is being introduced. Basically it is for those directors who have already done the form based DIR-3-KYC once before.

2) Any Director who holds a DIN as on 31st March of a financial year shall be required to do the form based DIR-3-KYC on or before 30th September of the next financial year, i.e. those directors who were allotted DIN during the financial year 2018-19 will be required to do a one time form based DIR-3-KYC on or before 30th September, 2019. Once he has done a form based DIR-3-KYC, then he need not do the form based compliance again.  On second and subsequent attempts, it is to be a web based DIR-3-KYC compliance for that financial year. Again for the next year, he will have to do a web based DIR-3-KYC compliance.

3) All those directors who did the form based DIR-3-KYC last year, will be required to do the web based DIR-3-KYC this year.

4) Any director who wants to update his personal e-mail id or mobile no. then it has to be done via a form based DIR-3-KYC only.

5) The fee for the form based DIR-3-KYC or the web based DIR-3-KYC is NIL if it is done within the stipulated date. In case of any delay, then fees of Rs.5000/- will be applicable to both the form based DIR-3-KYC and the web based DIR-3-KYC.

The MCA notifications are available on the MCA site.

Aadhar

PIB press release dated 28th February, 2019

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the promulgation of an Ordinance to make amendments to the Aadhaar Act 2016, Prevention of Money Laundering Act 2005 & Indian Telegraph Act 1885. The amendments proposed are the same as those contained in the Bill passed by the Lok Sabha on 4^th January 2019.

Impact:-         

The amendments would enable UIDAI to have a more robust mechanism to serve the public interest and restrain the misuse of Aadhaar.  Subsequent to this amendment, no individual shall be compelled to provide proof of possession of Aadhaar number of undergo authentication for the purpose of establishing his identity unless it is so provided by a law made by Parliament.

Salient Features

The salient features of the amendments are as follows—

• Provides for voluntary use of Aadhaar number in physical or electronic form by authentication or offline verification with the consent of Aadhaar number holder;
• Provides for use of twelve-digit Aadhaar number and its alternative virtual identity to conceal the actual Aadhaar number of an individual;
• Gives an option to children who are Aadhaar number holders to cancel their Aadhaar number on attaining the age of eighteen years;
• Permits the entities to perform authentication only when they are compliant with the standards of privacy and security specified by the Authority; and the authentication is permitted under any law made by Parliament or is prescribed to be in the interest of State by the Central Government;
• Allows the use of Aadhaar number for authentication on voluntary basis as acceptable KYC document under the Telegraph Act, 1885 and the Prevention of Money-laundering Act, 2002.
• Proposes deletion of section 57 of the Aadhaar Act relating to use of Aadhaar by private entities;
• Prevents denial of services for refusing to, or being  unable  to,   undergo authentication;
• Provides for establishment of Unique Identification Authority of India Fund;
• Provides for civil penalties, its adjudication, appeal thereof in regard to violations of Aadhaar Act and provisions by entities in the Aadhaar ecosystem.

Background:

The Supreme Court in its judgement dated 26.9.2018 in W.P (civil) No.494 of 2012 and other tagged petitions held Aadhaar to be constitutionally valid. However, it read down/struck down few sections of the Aadhaar Act and Regulations and gave several other directions in the interest of protecting the fundamental rights to privacy.

Consequently it was proposed to amend the Aadhaar Act, Indian Telegraph Act and the Prevention of Money Laundering Act in line with the Supreme Court directives and the report of Justice B.N.Srikrishna (Retd.) committee on data protection, in order to ensure that personal data of Aadhaar holder remains protected against any misuse and Aadhaar scheme remains in conformity with the Constitution. Towards this, the Aadhaar and Other Laws (Amendment) Bill, 2018 was passed by the Lok Sabha in its sitting held on 4^th January, 2019. However, before the same could be considered and passed in the Rajya Sabha, the Rajya Sabha was adjourned sine die.

Directors with two DINs

Those Directors who have taken more than one DIN either knowingly or in advertently are in for a huge setback. The KYC is going through for one DIN, but huge problem if you try to do KYC for the second DIN. As per MCA rules, if you have two DIN, then you have to surrender the latter one, for which a form DIR-5 has to be filed. Now if you try to file DIR-5 without doing the KYC, then system is not accepting stating that the DINs have been de-activated. If you somehow do the KYC of one DIN, then doing the KYC for the second DIN becomes a huge problem. The passport no. & aadhar no. is linked to the first DIN, so the system is rejecting if we mention these details. We cannot say that the incumbent does not have a passport or an aadhar because that is tantamount to making a wrong statement. It is a total quandary. MCA has tied itself in knots because of this issue. It is not user friendly or business friendly at all. People make mistakes, even business persons make mistakes at times, but there should be an amicable solution to all the human errors. Compliance is being sought to be done by surrendering the latter DIN, but the system is so rigid that it has become impossible to comply. 

DIR-3-KYC extension

MCA has vide its notification dated 20th September, 2018 given a limited time exemption to file form DIR-3-KYC for all DIN holders albeit with a reduced fee of Rs.500/-. This window is open from 21st October, 2018 to 5th October, 2018 after which the filing fees of Rs.5000/- will become applicable.

I think they should have continued with the fees of Rs.500/- only throughout instead of hiking it to Rs.5000/- from 6th October, 2018 onwards. 

annual KYC by all Directors

MCA has vide its notification dated 5th July, 2018 amended the Companies (Appointment and Qualification of Directors) Rules, 2014 wherein it has added a Rule 11(2) which gives powers to the Central Government or Regional Director (Northern region) to deactivate the DIN of any individual who does not file the newly created form DIR-3-KYC within the stipulated time.

The de-activated DIN can be activated only after the form DIR-3-KYC is filed along with the requisite fee as prescribed.

A Rule 12A has been added which provides that every individual who has been allotted a DIN as on 31st March of a financial year shall submit form DIR-3-KYC within 30th April of the immediate next financial year.

In the interim for the first year, all those individuals who are allotted a DIN shall file DIR-3-KYC within 31st August, 2018

The form DIR-3-KYC is given in the amendment, but not released yet. On a cursory glance at the form, it requires personal mobile no. and personal e-mail id of the Director to be indicated. The documents required are proof of identity and proof of residence. Not sure whether any specific proof is required for the mobile no. or e-mail id. That will be know only when the form is released and we go through the help file of the form.

This amendment has been made effective from 10th July, 2018 so the form DIR-3-KYC will also be released on that date at the MCA portal. 

KYC of all Directors

Important update from MCA - KYC of all Directors 

Posted on MCA website today. 

As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC
to be notified and deployed shortly. Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC
on or before 31st August,2018. While filing the form,the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password(OTP). The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
After expiry of the due date by which the KYC form is to be filed,the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’. After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken

Sovereign Gold Bonds Scheme

Sovereign Gold Bonds Scheme, Operational Guidelines

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11138&Mode=0

This has reference to the GoI notification F.No.4(25)-B/(W&M)/2017 and RBI circular IDMD.CDD.No.929/14.04.050/2017-18 dated October 06 2017 on the Sovereign Gold Bonds,. FAQs in this regard have been placed on our website (www.rbi.org.in). Operational guidelines with regard to this scheme are given below:

1. Application

Application forms from investors will be received at branches during normal banking hours from Monday to Wednesday of every week (both days inclusive). Receiving Offices need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected. Relevant additional details may be obtained from the applicants, where necessary. The Receiving Offices may make arrangements to enable the investors to apply online, in the interest of better customer service

2. Joint holding and nomination

Multiple joint holders and nominees (of first holder) are permitted. Necessary details may be obtained from the applicants as per practice.

3. Know-Your-Customer (KYC) requirements

Know-Your-Customer (KYC) norms shall be the same as that for purchase of physical form of gold. Identification documents such as passport, Permanent Account Number (PAN) Card, Voter's Identity Card, Aadhaar card shall be required. In case of minors only, the bank account number may also be considered as valid for KYC verification. KYC will be done by the issuing banks/SHCIL offices/Post Offices/agents. It may be ascertained from the investor, if he/she has made a previous investment in SGBs or IINSC-C and hence in possession of an Investor ID. If so, the investments may be made under the unique Investor ID only.

4. Cancellation

Cancellation of application is permitted till the closure of the issue, i.e. until Wednesday of the particular week of subscription. Part cancellation of submitted request for purchase of gold bonds is not permitted. No interest on application money needs to be paid if the application is cancelled.

5. Lien marking

As the bonds are government securities, lien marking, etc. will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under.

6. Agency arrangement

Scheduled Commercial Banks may engage NBFCs, NSC agents and others to collect application forms on their behalf. Banks may enter into arrangements or tie-ups with such entities. Commission for distribution shall be paid at the rate of rupee one per hundred of the total subscription received by the receiving offices on the applications received and receiving offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.

7. Processing through RBI’s e-Kuber system

Sovereign Gold Bonds will be available for subscription at the branches of scheduled commercial banks and designated post offices through RBI’s e- Kuber system. The e-Kuber system can be accessed either through INFINET or Internet. The Receiving Offices need to enter the data or carry out bulk upload for the subscriptions received by them. They may ensure accuracy of entry of data to prevent occurrence of any inadvertent errors. An immediate confirmation will be provided to them for receipt of application. In addition, a confirmation scroll will be provided for file uploads to enable the Receiving Offices to update their database. On the date of allotment, Certificates of Holding will be generated for all the subscriptions in the name of the sole/principal holder. The Receiving Offices can download the same and take printouts. The Certificates of Holding will also be sent through e-mail to the investors who have provided their email address. The securities will be credited in their de-mat accounts by the depositories, in due course, subject to matching of particulars furnished in the application with the depositories’ records.

8. Printing Certificates of Holding

Holding Certificate needs to be printed in colour on A4 size 100 GSM paper.

9. Servicing and follow up

Receiving Offices, i.e., branches of the Scheduled Commercial Banks, designated post offices, SCHIL and stock exchanges (NSE Ltd and BSE) will “own” the customer and provide necessary services with regards to this bond e.g. update contact details, receive requests for premature encashment, etc. Receiving Offices will be required to preserve applications till the bonds are matured and are repaid.

10. Tradability

The Bonds shall be eligible for trading on a date notified by the Reserve Bank of India. (It may be noted that only bonds held in demat form with depositories can be traded in stock exchanges)

KYC norms for bank account opening for mentally challenged persons

RBI had vide its notification no. RBI/2013-14/444 DBOD.No.Leg.BC.84/09.07.005/2013-14 dated 13th January, 2014 laid down guidelines for opening/ operating bank accounts for mentally challenged persons i.e. persons suffering from autism, cerebral palsy, mental retardation and any other form of mental disability. According to the said guidelines, 

1. The Mental Health Act, 1987 provides for a law relating to the treatment and care of mentally ill persons and to make better provision with respect to their property and affairs. According to the said Act, “mentally ill person” means a person who is in need of treatment by reason of any mental disorder other than mental retardation. Sections 53 and 54 of this Act provide for the appointment of guardians for mentally ill persons and in certain cases, managers in respect of their property. The prescribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, 1987.
2. The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 provides for a law relating to certain specified disabilities. Clause (j) of Section 2 of that Act defines a “person with disability” to mean a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disabilities. This Act empowers a Local Level Committee to appoint a guardian, to a person with disabilities, who shall have the care of the person and property of the disabled person.
3. Banks are advised to take note of the legal position stated above and may rely on and be guided by the orders/certificates issued by the competent authority, under the respective Acts, appointing guardians/managers for the purposes of opening/operating bank accounts. In case of doubt, care may be taken to obtain proper legal advice.

Subsequently it has been brought to the notice of the RBI that the banks have been insisting upon the guardianship certificate from all mentally ill persons, Therefore RBI has clarified vide its notification no. RBI/2015-16/321 DBR.No.Leg.BC.78/09.07.005/2015-16 dated 11th February, 2016 that "paragraph 2(iii) of the aforesaid circular is not intended to mandate banks to insist on  appointment of a guardian as a matter of routine from every person “who is in need of treatment by reason of any mental disorder”. It would be necessary for banks to seek appointment of a guardian only in such cases where they are convinced on their own or based on documentary evidence available, that the concerned person is mentally ill and is not able to enter into a valid and legally binding contract."

Banks therefore have to exercise their judgment and call for documents only if they feel or have documentary evidence that the person is incapable of operating the bank account and needs guardian to take care of him.