CDSL VENTURES LTD (CVL) KYC Platform

Transcription

1 Corporate and Investor Services Seminar Taipei, Taiwan August, 2018 CDSL VENTURES LTD (CVL) KYC Platform Presented by CDSL Ventures Limited (CVL) CDSL Insurance Repository Limited (CDSL IR) CDSL Commodity Repository Limited (CCRL)

2 Background of Common KYC in Capital Market CDSL conceptualized the common KYC system for MF investors in 2009 inassociation with MF industry body AMFI SEBI The Regulator - embraced the same in 2011 by formulation of KRA Regulations CVL First KRA under KRA regulations Launched on 1 st January, 2012 SEBI - made it mandatory for all intermediaries operating in Capital Market

3 Problems addressed by Common KYC Investors required to submit KYC documents multiple times Every intermediary required to collect KYC details/documents Investors need to update changes with each intermediary separately and keep track of all such updates No uniformity of data across intermediaries Time consuming and cost centric due to manual process & duplication Inadequate case of KYC documents Risk to investor

4 Principles of KYC (KRA) Access restricted only to regulated intermediaries KYC database access restricted only to clients of the intermediary Regulatory diktat PAN (Tax identification no.) and Date of Birth mandatory Regulatory Directive to prevent Misuse Alerts to the clients through SMS/ Inspection conducted by Stock Exchange and Depository to ensure compliance Intermediaries are mandated to update KYC details in KRA PAN mandatory Duplicate KYC records eliminated e-voting First and Largest Platform Companies Registered 8300+Instances

5 Functions of KRA Intermediary Registration Maintaining common database for all KYC records and supporting images Single point onboarding and updation of KYC by intermediaries after carrying out IPV and document verification CVL as an independent third party verifies KYC to ensure compliance with the Regulatory norms - done for new KYC records and form modifications Make the KYC data and images available to other intermediaries Intermediary downloads the KYC data and images for KYC due diligence before onboarding the client

6 Types of KYC processed Individuals Residents Indians Non-Resident Indians Foreign Nationals Non- Individuals Corporates Partnership Trust Bank Government Departments, etc. Association FPI, etc. CDSL-590+ Depository Participants CVL Intermediaries NAD 400+Academic Institutions

7 Procedure Account Creation & Use Client approaches intermediary to transact/open an account Intermediaries check whether KYC available If available downloads the details Does KYC due diligence and opens account Checks whether the details submitted by the client for opening match If different collects new details/documents and update the KYC database If KYC not available collects details/documents & upload to KRA

8 Updation of KYC Intermediary updates the KYC details on request of Investor KRA checks and validates the details Final updation of database after verification All subsequent Intermediaries who service the investor automatically informed of the change by way of EOD download Intermediaries update their database as due diligence Notification to Investor

9 Benefits of Common KYC To Investors To Intermediary To Regulators Not required to maintain copies of KYC documents Details of Investors can be fetched from KRA Single source of KYC information Not required to submit KYC documents multiple times Enable automation of account opening process Can track clients across all intermediaries Update details through one intermediary only Reduction in cost and time Auto updates received for changes

10 Additional Services For Convenience For Accuracy For Compliance Automation for Intermediaries Web Service available for all functions Maker/Checker concept in verification process Report submitted to the Audit Committee of the Board Field Staff Service: Interactive SMS facility to check status Concurrent Audit done by Independent Chartered Accountants Progress reporting to the Board CVL First and Largest growing KRA 17+ Million KYCs (Know Your Clients) 70 % Cumulative Market Share - KYCs 75% Incremental Market Share - KYCs KUA e-kyc User Agency

11 CVL Today CVL presently has fully digitized database of 17.5 million KYC More than 2100 intermediaries registered with CVL All Mutual Funds registered with CVL Response and retrieval online without latency Uptime 24*7 ISO 27001(IT Security), ISO 22301(Business Continuity) Certified CVL First and Largest growing KRA 17+Million KYCs (Know Your Clients) CAS Consolidated Account Statement 8 00,000 + statements per month CDSL IR Largest growing IR 300,000 eia (Electronic Insurance Accounts)

12 Thank You CDSL Ventures Limited (CVL) CDSL Insurance Repository Limited (CDSL IR) CDSL Commodity Repository Limited (CCRL)