SEBON and CDSC Working to Implement Centralized KYC (See full draft of Centralized KYC Service Operations Directive, 2077)

Securities Board of Nepal (SEBON) and CDS and Clearing Limited have forwarded the draft of “Centralized KYC Service Operations Directive, 2077”.

SEBON has requested everyone to submit any constructive criticism or recommendations on the directive draft at the email address legal@sebon.gov.np. 

The centralized system is expected to improve efficiency by making a centralized KYC profile that can be used in all areas of the securities market of Nepal. 

In the current scenario, an individual has to provide KYC details in every institution (broker company, Depository participant, and other financial activities) separately. Furthermore, s/he has to be physically present to get the details verified. 

The centralized KYC profile system is completely online and is believed to solve both these problems by allowing customers to submit a common KYC profile to all the institutions without being physically present. 

If any institution wants the details of a customer, it can download the KYC profile with the permission of the customer. 

The Centralized KYC Profile will require the individual’s biometrics, digital photograph, citizenship certificate, and any other identifying details like the birth certificate.

Every individual will get a unique KYC ID that can be used everywhere when the details of the individual are required.

The centralized KYC profile can be registered via:

1. Depository Participant
2. Securities broker
3. Investment Management Services
4. Merchant Bankers
5. Market Maker
6. Citizen Investment Trust

Draft of “Centralized KYC Service Operations Directive, 2077.”