CSDI e-KYC System Becomes Mandatory for Fund Managers, Investors

CSDI e-KYC System Becomes Mandatory for Fund Managers, Investors

The Securities and Exchange Organization (SEO) has issued a directive making Central Securities Depository of Iran's e-KYC system mandatory for all investment funds, their managers as well as for their investors.

Effective from 21 December 2024, investors in the investment funds are obliged to register in the CSDI's e-KYC system, known as the Comprehensive Information Gathering system (CIGS), as a prerequisite to electronically apply for the subscription or redemption of their assets in the funds. Additionally, fund managers are required to be registered in the CIGS to initiate the creation or redemption of ETFs as of 29 October 2024.

The SEO strongly urges all investors to prioritize registration in the CIGS to avoid multiple ID registrations with different service providers. Failure to comply with the directive may result in restrictions on investment fund activities and other capital market services.

Once registered in the CIGS, investors will no longer need to repeatedly provide their contact information, identification documents, or bank account details when switching brokers or investment funds.

All natural and legal investors planning to enter the Iranian capital market are obligated to provide necessary information through the CIGS system. This new regulation is designed to streamline the investor experience.

Totally designed and launched by the CSDI, the CIGS system streamlines the Know Your Customer (KYC) process for all capital market participants, particularly investors. By centralizing the KYC process, CIGS enhances efficiency and convenience, and streamlined experience within the Iranian capital market.