Ankit Ratan: This move by SEBI will ensure the protection of investor interests in the capital market and promote the development of security markets.
FinTech BizNews Service
Mumbai, May 16, 2024: Ankit Ratan, Co-founder & CEO, Signzy, has shared important viewpoint on ‘SEBI's recent circulation on simplifying risk management framework’: "SEBI's decision to simplify the risk management framework for validating Know Your Customer (KYC) records through KYC Registration Agencies (KRAs) is a positive step, reflecting their responsiveness to stakeholders' feedback. It demonstrates the open approach adopted by the regulator to ensure ease of transacting for investors while ensuring that companies adhere to compliance standards. KRAs can now verify PAN, name, address, email, and mobile number from official databases. If these details are found to be in order, they will be considered validated records.
It is expected to address challenges faced by many investors while also ensuring the verification of investors' digital identities. With a growing number of investors embracing digital platforms for investment, verifying digital identities has become increasingly important. Mutual fund houses, broking firms, and portfolio management service providers will need to implement robust compliance tools and risk management frameworks to safeguard investor data privacy and security. This will help ensure that all investors are onboarded after identity verification.
This move by SEBI will ensure the protection of investor interests in the capital market and promote the development of security markets. It represents a significant step towards enhancing digital trust and creating a secure digital environment for investors."
