Procedure for opening an account: Know Your Client (KYC) Process
Procedure for opening an account: Know Your Client (KYC) Process
- Definition: Know Your Client (KYC) is a process of verifying the identity of clients, which is mandatory under the Prevention of Money Laundering Act, 2002 and Rules framed thereunder.
- Details: The KYC process involves submitting Officially Valid Documents (OVDs) as proof of identity and proof of address, such as PAN card, UIDAI-Aadhar, Passport, Voter ID card, or Driving license.
Key Concepts in KYC
- KYC Identification Number (KIN): A unique number generated and communicated to the client by SMS/Email after submitting the KYC form.
- Validity of KYC: KYC is a one-time process and is valid across all intermediaries in the securities market.
- e-KYC: An electronic KYC process using UIDAI-Aadhaar or Digi Locker, which allows investors to complete the KYC process online.
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Tips for KYC Process
- Read and understand all documents before signing.
- Do not sign any blank documents.
- Refer to the Do’s and Don’ts mentioned in the account opening kit.
- Register your mobile number and email address with the bank, depository participant, and stock broker to receive transaction alerts.
e-KYC Process
- Fill the account opening details/form online on the Stock Broker’s website.
- Submit scanned images of mandatory documents/POA (Proof of address)/POI (Proof of Identity).
- Complete In-Person Verification (IPV) process over video call.
- Digitally sign the document, and the account will get activated.