The KYC onboarding system does not exist in a vacuum — it is shaped by a steady stream of regulatory circulars from SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of India), NPCI (National Payments Corporation of India), and MeitY (Ministry of Electronics and Information Technology). Every major feature in the system traces back to a specific circular: DDPI (Demat Debit and Pledge Instruction) exists because of a 2022 SEBI circular, dual KRA-CKYC upload became mandatory because of a 2024 circular, and so on.
This page is the master reference for those circulars. When you need to understand why the system works a certain way, or when a compliance officer asks “which circular requires this?”, start here.
Enabled online KYC, Aadhaar OTP e-KYC, Video In-Person Verification (VIPV), DigiLocker-based document fetch. IPV/VIPV exempted when Aadhaar authentication or DigiLocker is used
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KYC Validation by KRAs
SEBI/HO/MIRSD/DoP/P/CIR/2022/46
Apr 2022
Framework for validation of KYC records by KRAs — defines “Registered” vs “Validated” status
Simplified KYC process, rationalized risk management at KRAs based on stakeholder feedback
5
PAN-Aadhaar Linking Relaxation
SEBI/HO/MIRSD/SECFATF/P/CIR/2024/41
May 2024
Removed mandatory PAN-Aadhaar linking for “KYC Registered” status. Clients without linkage can transact with existing intermediary but KYC not portable
Proposes centralized supplementary info at KRA level, 5-year periodic review, removal of mobile re-verification, simplified address verification. Comments due Feb 6, 2026
Updated Anti-Money Laundering / Combating Financing of Terrorism standards. Supersedes Feb 2023 guidelines. Aligned with FATF standards
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Beneficial Ownership Thresholds
SEBI AML/CFT Guidelines 2024
Jun 2024
Lowered beneficial ownership thresholds from 25%/15% to 10% for both companies and partnerships. Enhanced due diligence for PEPs (Politically Exposed Persons) and special category clients
Replaces 1992 regulations entirely. New registration requirements (2 years experience), resident director mandate, cross-regulatory activities permitted
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DDPI replacing POA
SEBI/HO/MIRSD/DoP/P/CIR/2022/44
Apr 2022
DDPI (Demat Debit and Pledge Instruction) mandatory from Nov 2022. Replaces Power of Attorney. DDPI is optional for clients
14
Client Fund Upstreaming
SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84
Jun 2023
No client funds retained by brokers on EoD basis. All funds upstreamed to Clearing Corporations as cash, FDR lien, or MF Overnight pledge. Effective Jul 1, 2023
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Running Account Settlement
SEBI/HO/MIRSD circular
Jan 2024
Quarterly/monthly settlement of client running accounts. Free balance credited to registered primary bank on first Friday of quarter
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UCC-Demat Mapping
SEBI/HO/MIRSD/DOP/CIR/P/2019/136
Nov 2019
Mandatory mapping of UCC (Unique Client Code) with demat account at exchanges
Implementation of RBI’s Rs 1 lakh limit for MCC 6012, 6211. Securities brokers can process mandates up to Rs 1,00,000 without additional factor authentication
India’s first comprehensive data protection statute. Consent-based processing, purpose limitation, data minimisation. Applies to all digital personal data processing