{"id":3256,"date":"2021-03-13T05:17:31","date_gmt":"2021-03-13T05:17:31","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3256"},"modified":"2021-03-13T08:32:29","modified_gmt":"2021-03-13T08:32:29","slug":"legal-entity-template-rolled-out-by-sebi","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/","title":{"rendered":"Legal Entity Template Rolled Out by SEBI"},"content":{"rendered":"\n<p class=\"has-drop-cap\">On 10.03.2021, the Securities and Exchange Board of India (SEBI), by way of the powers provided under section 11 (1) of the SEBI Act 1992, has rolled out a Legal Entity Template. The same was notified through SEBI Circular SEBI\/HO\/MIRSD\/DOP\/CIR\/P\/2021\/31.<\/p>\n\n\n\n<p>As per this circular, the market\nregulator SEBI has asked the RIs (Registered Intermediaries) to upload the KYC\n(Know Your Customer) data concerning accounts of LEs (Legal Entities), which\nare opened on or after 1<sup>st<\/sup> April, onto the CKYCR (Central KYC\nRegistry).<\/p>\n\n\n\n<p>Further, it\nshall be noted that the Registered Intermediaries have already been furnishing\nthe KYC data concerning individuals\u2019 accounts that are opened on or after\n01.08.2016 onto Central KYC Registry.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8f53e5f74\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8f53e5f74\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/#Eligible_Intermediaries_for_SEBI_Circular_on_Legal_Entity_Template\" title=\"Eligible Intermediaries for SEBI Circular on Legal Entity\nTemplate\">Eligible Intermediaries for SEBI Circular on Legal Entity\nTemplate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/#Need_for_Legal_Entity_Template\" title=\"Need for Legal Entity Template\">Need for Legal Entity Template<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/#Key_Directions_for_Registered_Intermediaries\" title=\"Key Directions for Registered Intermediaries\">Key Directions for Registered Intermediaries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-template-rolled-out-by-sebi\/#Official_SEBI_Circular_on_Legal_Entity_Template\" title=\"Official SEBI Circular on Legal Entity Template\">Official SEBI Circular on Legal Entity Template<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligible_Intermediaries_for_SEBI_Circular_on_Legal_Entity_Template\"><\/span>Eligible Intermediaries for SEBI Circular on Legal Entity\nTemplate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nintermediaries eligible for SEBI Circular on Legal Entity Template are as\nfollows:<\/p>\n\n\n\n<ul><li>All the Recognized Stock Exchanges (RSEs);<\/li><li>All the Recognized Depositories;<\/li><li>Stock Brokers through the Recognized Stock Exchanges;<\/li><li>Depository Participants through Recognized Depositories;<\/li><li>Association of Mutual Funds in India (AMFI);<\/li><li>All the Mutual Funds and AMCs (Asset Management Companies)\nthrough AMFI;<\/li><li>Portfolio Managers;<\/li><li>KYC Registration Agencies (KRAs);<\/li><li>Qualified Registrar to an Issue &amp; Share Transfer\nAgents (QRTAs);<\/li><li>Alternative Investment Funds (AIFs);<\/li><li>Collective Investment Schemes (CIS);<\/li><li>Custodians;<\/li><li>Investment Advisors;<\/li><\/ul>\n\n\n\n<p>However, it shall be taken into due consideration that the provision of this SEBI Circular will not be applicable to Foreign Portfolio Investors (FPIs).<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/swaritadvisors.com\/blog\/guidelines-for-votes-cast-by-mutual-funds-prescribed-by-sebi\/\">Guidelines for Votes Cast by Mutual Funds Prescribed by SEBI<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_Legal_Entity_Template\"><\/span>Need for Legal Entity Template<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Earlier, the\nCentral KYC Registry is fully operational for individual clients. However, now\nit has been decided to extend the same to legal entities as well<\/p>\n\n\n\n<p>Consequently,\nRegistered Intermediaries will need to upload the KYC records and data of the accounts\nof Legal Entities, opened on or after 01.04.2021. Also, it shall be noted that\nthe same will done in accordance with the provisions of Rule 9 (1A) of the\nPrevention of Money Laundering (Maintenance of Records) Rules 2005.Therefore, in this\nregard, the securities market regulator, i.e., has come out with a legal entity\ntemplate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Directions_for_Registered_Intermediaries\"><\/span>Key Directions for Registered Intermediaries<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key\ndirections for Registered Intermediaries by this SEBI Circular can be\nsummarised as:<\/p>\n\n\n\n<ul><li>All the Registered Intermediaries need to ensure that in the case of LE accounts, which are opened before01.04.2021, the records concerning KYC requires to be uploaded onto Central KYC Registry when the updated KYC details are obtained or received from the client. Also, RIs need to confirm that during the receipt of updated information, the client\u2019s KYC details are migrated to the current CDD (Client Due Diligence) standard;<\/li><li>Further, to confirm that all the existing KYC records of individual clients are incrementally furnished onto the Central KYC Registry, RIs will upload the KYC records and data concerning the accounts of individuals opened before01.08.2016, as and when the updated KYC details are obtained or received from the client;<\/li><li>Where a client intents to found an account based relationship, then, in that case, he\/ she requires to furnish a KYC Identifier to a Registered Intermediary, with clear consent to download records from the Central KYC Registry. After that, the Registered Intermediary will retrieve the KYC records online from the Central KYC Registry using the KYC Identifier. Also, it shall be noted that the client will not be required to furnish the same KYC records or data or any other supplementary identification documents or information unless there is some change in the information or details of the client as      prevailing in the records of the Central KYC Registry;<\/li><li>Once a KYC Identifier is generated by the Central KYC Registry, the Registered Intermediaries will ensure that the same is duly communicated to the individual or legal entity.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, based on the powers\nprovided under section 11 (1) of the SEBI Act 1992, the capital market\nregulator, i.e., <a href=\"https:\/\/www.sebi.gov.in\/\">SEBI<\/a> has rolled out a\nLegal Entity Template, to ask\nRegistered Intermediaries to upload the KYCdata concerning to accounts of Legal\nEntities, which are opened after 1<sup>st<\/sup> April, onto the Central KYC\nRegistry.<\/p>\n\n\n\n<p>However, it shall be noted that Foreign Portfolio\nInvestors are not one of the eligible registered intermediaries for this SEBI\nCircular and are out of its ambit.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/\">Revised Framework for Innovation Sandbox Prescribed by SEBI<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_SEBI_Circular_on_Legal_Entity_Template\"><\/span>Official SEBI Circular on Legal Entity Template<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Official-SEBI-Circular-on-Legal-Entity-Template.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-SEBI-Circular-on-Legal-Entity-Template<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 10.03.2021, the Securities and Exchange Board of India (SEBI), by way of the powers provided under section 11 (1) of the SEBI Act 1992, has rolled out a Legal Entity Template. The same was notified through SEBI Circular SEBI\/HO\/MIRSD\/DOP\/CIR\/P\/2021\/31. As per this circular, the market regulator SEBI has asked the RIs (Registered Intermediaries) to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,64],"tags":[489],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3256"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3256"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3256\/revisions"}],"predecessor-version":[{"id":3285,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3256\/revisions\/3285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3257"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}