(1) The Board shall have the power to appoint a qualified independent auditor to inspect, intothe books of accounts, records, documents, infrastructures, systems and procedures of aKRA.
(2) The Board shall be entitled to recover from the KRA such expenses including fees paid tothe auditors, as may be incurred by it for the purposes of inspecting the books of accounts,records, documents, infrastructures, systems and procedures of the KRA.
CHAPTER V PROCEDURE FOR ACTION IN CASE OF DEFAULT Liability for action in case of default
25. A KRA shall be liable for action if it –
(a) contravenes any of the provisions of the Act, and these regulations;
(b) fails to furnish any information relating to its activity as a KRA as required underthese regulations;
(c) does not co-operate in any inspection or investigation or enquiry conducted by theBoard;
(d) fails to comply with any direction of the Board;
(e) fails to pay the requisite fees to the Board;
and shall be dealt with in the manner provided under the Chapter V of the Intermediaries Regulations.
SCHEDULE I SECURITIES AND EXCHANGE BOARD OF INDIA {KYC (KNOW YOUR CLIENT) REGISTRATION AGENCY} REGULATIONS, 2011 [Regulation 3] FORM A Application for grant of certificate of 18[***] registration INSTRUCTIONS FOR FILLING UP FORM –
1. Applicants must submit to the Board a completed application form together with appropriatesupporting documents and applicable application fees. Supporting documents should beattested as true by a notary public.
2. This application form should be filled in accordance with the regulations.
3. Application for registration will be considered, only if it is complete in all respects.
4. All answers must be typed.
5. Information which needs to be supplied in more detail may be given on separate sheets whichshould be attached to the application form.
6. All signatures on the application must be original.
7. Every page of the form as well as every additional sheet must be initialed by the authorisedsignatory of the applicant.
Part I
1. General details of the applicant and its affiliates: Management Compliance Matrix/Structure
1.1. Name of the applicant:
1.2. Address of the registered office, address for correspondence, telephone numbers, faxnumbers, e-mail, website, name and telephone number of the contact person, address of branchoffice, if any:
1.3. Date and place of incorporation/establishment and registration number given by theRegistrar of Companies or any other authority:
1.4. Legal status of the applicant and the law, under which it is incorporated, established orregistered, if any including where the applicant is a listed entity, the details of the exchanges(whether in India or abroad) where the applicant is listed:
1.5. Brief description of the principal activity of the applicant: (along with copies of theconstitutional documents of the applicant) 18 The words “initial or permanent” Omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
1.6. Year of commencement of such activities ( if applicable):
1.7. Shareholding pattern of the applicant (please set out the names of all such persons who holdwhether directly or indirectly more than 5% of the shareholding or voting rights in the company):
Name of the shareholder No. of Shares [% of shareholding] / [% of voting rights] Where control over the applicant is exercised by a person by way of an agreement orarrangement, details and documentation in relation to such agreement or arrangement as the casemay be.
1.8. Details of significant affiliates of the applicant operating in India or abroad and activitiescarried out by them including details as regards the legal status of each such affiliates and thelaw, under which it is incorporated, established or registered, if any.
Legal Status and details of registration Name Address Telephone no Fax No E mail address
1.9 The Category to which the applicant belongs in terms of Regulation 6:
1.10 Networth of the applicant for the past three financial years(enclose copy of balance sheetand a copy of the latest networth certified by a practicing chartered accountant)
1.11 Whether any disciplinary /penal action has been taken by SEBI/any other statutoryauthorityin the last five years against the applicant or its parent company: If so, furnish details includingstatus of the proceedings and whether the penalty has been paid FORM B SECURITIES AND EXCHANGE BOARD OF INDIA {KYC (KNOW YOUR CLIENT) REGISTRATION AGENCY} REGULATIONS, 2011 [Regulations 7 19[***]] Certificate of Registration 19The words “and 8” Omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
I. In exercise of the powers conferred by sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992, read with the regulations made thereunder the Board hereby grants an 20[***] certificate of registration to _________________________________ as a KYC Registration Agency, subject to the conditions specified in the Act and in the regulations made thereunder.
II. Registration Number for the KYC Registration Agency is IN/....../……./…..../....
III. 21[This certificate of registration shall be valid unless it is suspended or cancelled by the Board.]
Date:
Place: Mumbai By Order For and on behalf of Securities and Exchange Board of India Authorised Signatory
SCHEDULE II PAYMENT OF FEES SECURITIES AND EXCHANGE BOARD OF INDIA (KYC REGISTRATION AGENCY) REGULATIONS, 2011 [Regulations 722[***] ]
PART A APPLICATION FEES, REGISTRATION FEES AND ANNUAL FEES S.N Amount in Rupees 20The words “initial/permanent” omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
21Substituted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016. Prior to substitution paragraph III read as under:
“III.This certificate of registration shall be valid from …. to …./ for permanent , unlesssuspended or cancelled by the Board.” 22The words “and 8” omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
1 Application fees (non-refundable) payable by KRA for initial and permanent registration 50000 2 23[***] Registration fees payable by KRA 100000 3 Annual fees payable by KRA 100000
PART B Manner of Payment of Application, Registration and Annual Fees Fees to be paid by KRA Manner of payment –24[The fees shall be paid by way of direct credit in the bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI or by]demand draft or bankers cheque payable to the "Securities andExchange Board of India" at Mumbai or at the respective regional office.
The application fee referred to in Part A shall be paid at the time of filing application.
Theregistration fee referred to in Part A shall be paid by the KRA within fifteen days from the dateof receipt of intimation from the Board. The Annual fee shall be paid within 30 days of the endof the financial year.
SCHEDULE - III CODE OF CONDUCT SECURITIES AND EXCHANGE BOARD OF INDIA {KYC (KNOW YOUR CLIENT) REGISTRATION AGENCY} REGULATIONS, 2011 [Regulation 10]
1. A KRA shall make all efforts to protect the interest of its clients.
2. A KRA shall maintain high standards of integrity, dignity and fairness in the conduct of its business.
3. A KRA shall fulfill its obligations in a prompt, ethical and professional manner.
23The words “initial and permanent” omitted by the Securities andExchange Board ofIndia (Change In Conditions Of Registration Of Certain Intermediaries) (Amendment) Regulations,2016 w.e.f. 08-12-2016.
24 Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6‐3‐
2017.
4. A KRA shall at all times exercise due diligence, ensure proper care and exercise independentprofessional judgment.
5. A KRA shall ensure that any change in registration status/any penal action taken by Board orany material change in financial position which may adversely affect the interests of clients ispromptly displayed on its website.
6. A KRA shall not divulge to anybody either orally or in writing, directly or indirectly, anyconfidential information about the clients which has come to its knowledge, without takingprior permission of its clients, except where such disclosures are required to be made incompliance with any law for the time being in force.
7. A KRA shall not indulge in any unfair competition.
8. A KRA shall display on its website adequate and appropriate information about its business,including contact details of persons and services available to clients.
9. A KRA shall ensure that grievances of clients are redressed in a timely and appropriatemanner;
10. A KRA shall make reasonable efforts to avoid misrepresentation and ensure that theinformation provided to the clients and intermediaries is not misleading.
11. A KRA shall abide by the provisions of the Act and the rules, regulations issued by theGovernment and the Board, from time to time, as may be applicable.
12. A KRA shall not make untrue statement or suppress any material fact in any documents,reports, papers or information furnished to the Board.
13. A KRA shall ensure that the Board is promptly informed about any action, legal proceeding,etc., initiated against it in respect of any material breach or non-compliance by it, of any law,rules, regulations and directions of the Board or of any other regulatory body.
14. (a) A KRA or any of his employees shall not render, directly or indirectly, any investmentadvice about any security in the publicly accessible media.
(b) A KRA shall not make a recommendation to any client who might be expected to relythereon to acquire, dispose of or retain any securities.
15. A KRA shall ensure that any person it employs or appoints to conduct business is fit andproper and otherwise qualified to act, in the capacity so employed or appointed includinghaving relevant professional training or experience.
16. A KRA shall have internal control procedures and financial and operational capabilitieswhich can be reasonably expected to protect its operations, its clients from financial lossarising from theft, fraud, and other dishonest acts, professional misconduct or omissions.
17. A KRA shall be responsible for the acts or omissions of its employees in respect to theconduct of its business.
18. A KRA shall provide adequate freedom and powers to its compliance officer for the effectivedischarge of its duties.
19. A KRA shall ensure that the senior management, particularly decision makers have access toall relevant information about the business on a timely basis.
20. A KRA shall ensure that good corporate policies and corporate governance are in place.
21. A KRA should have adequately trained staff and arrangements to render fair, prompt andcompetence services to its clients.
22. A KRA shall develop its own internal code of conduct for governing its internal operationsand laying down its standards of appropriate conduct for its employees and officers in thecarrying out of their duties. Such a code may extend to the maintenance of professionalexcellence and standards, integrity, confidentiality, objectivity, avoidance of conflict ofinterests, disclosure of shareholdings and interests, etc.
23. A KRA shall not be party to—
(a) creation of false market;
(b) price rigging or manipulation;
(c) passing of unpublished price sensitive information in respect of securities which are listedand proposed to be listed in any stock exchange to any person or intermediary.
24. A KRA shall maintain proper inward and outward system for all types of mail received anddispatched in all forms.
25. A KRA shall follow maker-checker concept in its activities to ensure accuracy of data.
26. A KRA shall not indulge in manipulative, fraudulent practices in the process ofidentification, verification and updation of a Client’s KYC information with a view to distortmarket equilibrium or making personal gains.
U. K. SINHA CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA