Association of National Exchanges Members of India (ANMI), a national body of stock brokers, today sought extension of deadline for registering with central know your customers (C-KYC) norms.
"The C-KYC deadline is December 31, 2016 and unless it is extended there will be total chaos and trading will affected drastically," ANMI President S K Rustagi said here on the sidelines of Capital Market Summit.
No investor can trade anymore unless C-KYC compliant and registering completely afresh for nearly three crore investors is just not possible by December, he said.
Moreover, people are busy with bank works following cash crunch problem due to demonetisation.
"It took almost four years to complete KYC with Sebi recognised 10 KYC registering agencies. Now, this time only agency DotEx is engaged," Rustagi said.
ANMI also pointed out there are still glitches which are protecting even brokers to get registered.
"Currently, even brokers are not C-KYC complaint and unless they are covered how can they facilitate its clients?" brokers asked.
According to reports Sebi has also written to the ministry seeking modification or changes.
It wants to avoid duplication of work and exempt individual clients whose accounts were opened before August 1 from undergoing KYC process all again.
In July, NSE's DotEx and central server CERSAI had launched an online centralised KYC record registry, a move that will help in saving costs for financial institutions.
In C-KYC, investors need to submit their KYC details only once with any financial institution. Thereafter, they are assigned a unique central KYC number which can be used across all financial products, including bank accounts, mutual fund investments, insurance policies and demat accounts.
In addition, C-KYC will also solve the problem of financial institutions and intermediaries which at present have to deal with multiple KRAs under Sebi.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)