KYC Registration Agencies may share information with IFSCA-regulated entities: SEBI specifies IFSCA under regulation 16A of the KRA Regulations
SEBI has specified the International Financial Services Centres Authority (IFSCA) under regulation 16A(1) of the KRA Regulations, 2011. Entities regulated by IFSCA may now access the systems of SEBI-registered KYC Registration Agencies to do KYC of their clients. They must follow the KRA Regulations, SEBI’s KYC Master Circular and, for FPI clients, the data security guidelines in the FPI Master Circular.
Key facts
- In force
- Immediate effect from 20 August 2026
- Who it affects
- KYC Registration Agencies, entities regulated by IFSCA, their clients including FPIs
- What it is
- New facility
- Section
- SEBI
- Published
- 20 August 2026
In 30 seconds
- Circular No. HO/38/15/(7)2026-MIRSD-POD/I/19255/2026 is dated 20 August 2026 and is addressed to all KRAs.
- IFSCA is specified for the purpose of regulation 16A(1) of the SEBI KRA Regulations, 2011.
- Entities regulated by IFSCA may access the KRA system for KYC of clients who engage them for financial services.
- The KRA Regulations apply to every such entity that accesses the system (regulation 16A(2)).
- They must follow the Master Circular on KYC norms for the securities market dated 12 October 2023, as amended.
- In force with immediate effect.
हिंदी में सार
SEBI ने 20 अगस्त 2026 के सर्कुलर से KRA Regulations, 2011 के regulation 16A(1) के तहत IFSCA को निर्दिष्ट किया है। अब IFSCA द्वारा विनियमित संस्थाएँ अपने ग्राहकों का KYC करने के लिए SEBI-पंजीकृत KYC Registration Agencies के सिस्टम का इस्तेमाल कर सकती हैं। उन्हें KRA Regulations और SEBI के KYC Master Circular का पालन करना होगा; FPI ग्राहकों के लिए data security के दिशानिर्देश भी लागू होंगे।
The enabling regulation
Regulation 16A(1) of the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011 allows entities regulated by other financial sector regulators to use the KRA system, but only where SEBI has specified that regulator. It reads:
“The entities, regulated by other regulators in the financial sector specified by the Board from time to time, may access the system of KRA for undertaking KYC of their clients who engage them for financial services.”
What the circular does
By a circular dated 20 August 2026 addressed to all KYC Registration Agencies, SEBI has specified the International Financial Services Centres Authority (IFSCA) for the purpose of that regulation. The stated purpose is to enable interoperability and to facilitate sharing of information between SEBI-registered KRAs and entities regulated by IFSCA.
Conditions on IFSCA-regulated entities that use the KRA system
| Requirement | Source named in the circular |
|---|---|
| The provisions of the SEBI KRA Regulations apply to all such entities that access the KRA system for KYC of their clients | Regulation 16A(2) of the SEBI KRA Regulations |
| They must follow SEBI’s KYC guidelines | Master Circular on Know Your Client (KYC) norms for the securities market dated 12 October 2023, as amended from time to time |
| For clients registered as Foreign Portfolio Investors, they must also follow the guidelines for “Data Security” | Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors dated 30 May 2024, as amended from time to time |
Scope
The access is for one purpose: undertaking KYC of clients who engage the IFSCA-regulated entity for financial services. The circular does not list the categories of IFSCA-regulated entities, and it does not set any fee or onboarding procedure.
It is issued under section 11(1) of the SEBI Act, 1992 read with regulation 16A(1) of the KRA Regulations, with the approval of the Competent Authority.
What KRAs and IFSC entities should do
- KRAs can now give system access to entities regulated by IFSCA for client KYC.
- An IFSCA-regulated entity that takes such access comes under the SEBI KRA Regulations for that purpose and should align its KYC process with SEBI’s KYC Master Circular.
- Where the client is a registered FPI, the data security guidelines of the FPI Master Circular must be followed as well.
Questions and answers
Can an IFSCA-regulated entity use KRA records for client KYC?
Yes. SEBI has specified IFSCA under regulation 16A(1) of the SEBI KRA Regulations, 2011, so entities regulated by IFSCA may access the system of a KRA for undertaking KYC of their clients who engage them for financial services.
Which rules apply to such an entity?
The provisions of the SEBI KRA Regulations apply to it, and it must follow SEBI’s Master Circular on KYC norms for the securities market dated 12 October 2023, as amended from time to time.
Is there anything extra for FPI clients?
Yes. For clients registered as Foreign Portfolio Investors, the entity must follow the guidelines for Data Security specified in SEBI’s Master Circular dated 30 May 2024 for FPIs, DDPs and Eligible Foreign Investors.
From when does this apply?
The circular dated 20 August 2026 came into force with immediate effect.
Published 20 August 2026. Updated 8 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.