SEBI Mandates KYC Registration Agencies to Publish Investor Charter on their Websites

SEBI has mandated all KYC Registration Agencies (KRAs) to prominently display a standardized Investor Charter on their websites, detailing client rights and grievance redressal mechanisms. The circular requires disclosure of specific service timelines - 5 working days for KYC processing and 30 days for complaint resolution. KRAs must also publish quarterly reports on compliance metrics and pending grievances, enhancing transparency for India's 60 million capital market investors. This directive addresses persistent complaints about KYC update delays and difficulties in rectifying erroneous flags. The prescribed charter format enumerates seven investor rights including access to records, data confidentiality, and fair treatment. Non-compliance may attract penalties under SEBI KRA Regulations, with the framework taking effect from August 2025. While industry associations support the investor protection intent, they seek clarification on handling legacy KYC records and liability for intermediary-submitted data. This complements SEBI's broader reforms including the upgraded SCORES 2.0 portal and aligns with global best practices for financial sector transparency.