Q.44(3) : Is it mandatory to get registered with both CVL KRA & CERSAI CKYC or anyone is fine.

Response : 

CKYC & KRA-KYC – both are mandatory. 

CKYC is the master of all! and also the latest reform in the securities market!

As per Regulation 15(8) an investment advisor shall follow KYC procedure as specified by SEBI from time to time.

• CKYC is mandatory because of SEBI Circulars dt. July 21, 2016 and November 10, 2016.

Note: CKYC ID (14 digits) is to be ensured for every investor coming into the market.

• KRA-KYC is mandatory because of SEBI KYC Registration Agency Regulations, 2011, where Regulation 16 states the function of ‘Intermediary’ to perform KYC on the system of KRA.

Note: (i) ‘Intermediary’ as per Regulation 2(f) means an entity associated with securities market and registered under sub-section (1A), (1B) and (1) of Section 12 of the SEBI Act, 1992; who is required to do KYC of its clients.

(ii) Under SEBI Act, 1992 ‘Investment Advisor’ is registered under Sub-section (1) of Section 12.

Friendly note: Even with KRA-KYC they are in-turn required to update in the CKYC registry. Because CKYC is the master of all. So, better get registered with both, but use only CKYC for all purposes of KYC – that is the final authority.