SEBI/HO/MIRSD/PODFATF/P/CIR/2025/123 September 05, 2025 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MIRSD/PODFATF/P/CIR/2025/123 September 05, 2025 To, All KYC (Know Your Client) Registration Agencies (KRAs) Dear Sir/Madam, Subject: Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration. 1. Background : 1.1. Regulation 13 of {KYC (Know Your Client) Registration Agency} Regulations, 2011 provides that a KRA, who has been granted a certificate of registration under the Act or the regulations made there under, may make a request for surrender to the Board, duly satisfying the Board, about the factors, as it deems fit, including but not limited to :  The arrangements made by KRA for maintenance and preservation of records and other documents required to be maintained under these regulations;  Transfer of records of its clients;  The arrangements made by it for ensuring continuity of service to the clients;  Redressal of investor grievances;  Defaults or pending action, if any. 1.2. In this context, based on the inputs received from the stakeholders, it is decided that the process for surrender of KRA registration should be streamlined for voluntary/involuntary scenarios so that critical operations and services of KRA are wind down in orderly manner. 1.2.1. Voluntary: The KRA wishes to surrender its registration i.e. wind down its critical operations and services and exit as a result of strategic or business decision. 1.2.2. Involuntary: Where surrender of registration (winding down) arises, is due to financial distress, or regulatory actions, including suspension or cancellation of SEBI registration. 2. Critical Operations and Services of KRAs : 2.1. The registration and modification of KYC records of investors through registered intermediaries and maintaining interoperability amongst KRAs for facilitat