The Ministry of Finance, Department of Revenue, has issued a new notification S.O. 4697(E) dated October 16, 2025 under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (PML Rules). The amendment brings greater operational flexibility to intermediaries regulated under the Securities and Exchange Board of India (SEBI) by allowing them to upload and manage Know Your Customer (KYC) data through KYC Registration Agencies (KRAs).
The notification, issued in consultation with SEBI, extends the provisions of sub-rules (1A), (1C), and (1D) of Rule 9 of the PML Rules to reporting entities classified as "intermediaries" under the SEBI (KYC Registration Agency) Regulations, 2011, with certain modifications aimed at streamlining compliance and data sharing.
Key Highlights of the Notification
- Dual Upload Option for Intermediaries: Intermediaries can now upload KYC records directly on the Central KYC Records Registry (CKYCRR) or route them through a KYC Registration Agency (KRA).Any KYC information uploaded by an intermediary with a KRA and subsequently transmitted by the KRA to CKYCRR will be treated as an upload by the intermediary itself under Rule 9(1A).
- Simplified Updates and Information Flow: Updates or additional information to KYC records made through KRAs and uploaded to the CKYCRR will also be deemed to have been uploaded by the intermediary. Similarly, when CKYCRR sends KYC updates to KRAs, it will be considered as CKYCRR informing the intermediary of such updates under Rule 9(1D).
- Retrieval Flexibility: For KYC verification purposes under Rule 9(1C), intermediaries may retrieve KYC records either directly from the CKYCRR or through their registered KRA.
Impact on Financial Intermediaries
The move is expected to simplify the compliance burden on stockbrokers, mutual fund distributors, portfolio managers, and other SEBI-registered intermediaries who are classified as "reporting entities" under the PMLA framework. By recognizing uploads made through KRAs as valid for CKYCRR purposes, the government aims to reduce duplication of data uploads, improve accuracy, and enhance the interoperability between SEBI's KRA system and the government-managed CKYC framework.
This notification further strengthens the RegTech-driven integration between SEBI's KYC ecosystem and the government's anti-money laundering compliance infrastructure, ensuring better data consistency and smoother investor onboarding across the securities market.
Official copy of the notification has been attached
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