The Securities and Exchange Board of India (SEBI) on January 16, 2026, issued a Consultation paper for simplification of client on-boarding and rationalisation of risk management framework at KYC Registration Agencies.
The following has been stated: -
•SEBI proposes multiple KYC reforms to simplify client onboarding and strengthen KRA risk management, effective from the date of issue of the circular.
•Intermediaries must inform KRAs within 3 working days of account closure; KRAs must update/delink KYC records within 2 working days to prevent data misuse.
•Key relaxations include optional overseas address proof for OCI residents in India, no additional documents for name change if updated in PAN/Aadhaar, and easing current address source verification.
•KRAs will centralise supplementary client data, send periodic update alerts, and existing KYC records must be updated within 3–6 months as prescribed.
