Currently, Asset Management Companies (AMCs) process an investment and open a folio after their internal checks, even as the formal Know Your Client (KYC) verification by the KYC Registration Agency (KRA) is pending. This sequential method has led to instances where folios are later marked as KYC non-compliant due to KRA-identified discrepancies, preventing investors from executing future transactions or receiving redemptions/dividends accurately. The proposed change mandates that the first investment in a new folio will only be permitted after the KRA has successfully completed the KYC verification and the folio is officially marked as KYC compliant in the KRA system.