(1) The Board may appoint one or more persons as inspecting authority to undertakeinspection of the books of accounts, records, documents, infrastructure, systems andprocedures, of a KRA, for any purpose specified in sub-regulation (2).
(2) The Board may inspect a KRA for the following purposes:
(a) that the books of accounts, records and KYC documents, as prescribed by the Board,are being maintained by the KRA;
(b) to look into the complaints received by the KRA from clients or any other person;
(c) to ascertain whether the provisions of the Act and these regulations are beingcomplied with;
(d) to ascertain whether the systems, procedures and safeguards being followed by aKRA are adequate;
(e) to ensure that privacy of clients’ data is maintained and the same is not shared withany other agency/associates in violation of these regulations;
(f) to ensure that the affairs of a KRA are being conducted in a manner which are in theinterest of the investors and securities market.
Notice before inspection