Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration

SEBI, vide its Circular dated September 05, 2025, has streamlined the process for surrender of KRA (Know Your Client Registration Agency) registration, applicable in both voluntary (strategic/business decision) and involuntary (financial distress/regulatory action) scenarios. The framework mandates that critical KRA operations—primarily registration, modification, and portability of KYC records—must be seamlessly transferred to another SEBI-registered KRA through a uniform SOP ensuring data integrity, continuity of services, and investor protection.

The Transferor KRA must form an Oversight Committee, notify stakeholders, conduct audits, and ensure smooth migration of data to the Transferee KRA without fresh KYC requirements. Detailed timelines for board approval, SEBI intimation, stakeholder communication, data transfer, and compliance reporting are prescribed, with SEBI retaining powers to appoint administrators, nominate transferee KRAs, or override timelines in enforcement-driven wind-downs. KRAs must disclose SOPs on their websites within 90 days and review them periodically.

Link: View Circular