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KRA Investor Charter: SEBI’s Proposal to Inform Investors

7 April 20251 min read
BANKING & FINANCEKRA InvestorCharter: SEBI’sProposal to InformInvestors7 April 2025safalsetu.com

Why in the news

SEBI suggested a standard charter so investors understand what KRAs do and how to raise service requests or complaints.

Key facts

  • Purpose: educate investors about KRA roles, services, rights and grievance redressal, and make KYC handling uniform.
  • Contents: vision and mission, services, investor rights and responsibilities, do’s and don’ts, complaint process.
  • Display duty: websites, offices and email to investors.

About KRAs

  • Introduced by the SEBI (KRA) Regulations, 2011 to centralise and digitise KYC records.
  • An intermediary uploads a client’s completed KYC to a KRA, after which all SEBI-registered intermediaries can use it, so repeat submissions are unnecessary.

Significance

Part of SEBI’s push to build investor confidence and smoother participation in the capital market.

Exam angle

  • KYC: Know Your Client.
  • Regulations: SEBI (KRA) Regulations, 2011.

Test yourself

1. Under which regulations were KYC Registration Agencies introduced, as in SEBI's KRA Investor Charter proposal?

KRAs were introduced under the SEBI (KRA) Regulations, 2011.

2. How must KRAs share the proposed SEBI Investor Charter with investors?

They must display it on websites and in offices and email it.

3. What is the main purpose of the SEBI-proposed Investor Charter for KRAs?

It aims to educate investors about KRA services, rights and grievance redressal.