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RBI extends deadline for periodic KYC update to March 31, 2022 December 29 2021Demat Trading account KYC Rules, How to complete K

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Sebi extends KYC deadline for demat

To open a trading-cum-demat account with a broker, you must first complete know your customer (KYC).

RBI extends deadline for periodic KYC update to March 31, 2022


Why does SEBI require KYC before a demat account can be opened?

The idea is that the customer has all of the necessary documentation and that the flow of funds can be traced through banking channels. According to SEBI regulations, it is no longer feasible to open a demat account without first completing your KYC.

The DP / broker will require you to fill out a KYC form together with your client agreement form when you open a Demat account. KYC requires some basic paperwork and the submission of required papers, including originals, for verification.

First and foremost, what is the purpose of KYC?

The RBI issued KYC guidelines in 2002, which SEBI has implemented for all investment-related operations such as opening a trading account, a demat account, or investing in mutual funds. Money laundering, acting as fronts for organizations, trading in cash without audit trails, fraud, and financing of anti-national actions were all part of the plan.

Your data is saved in a central database after the KYC has been in place, so you only have to do it once. After then, it's merely a matter of linking your PAN card to the central database and retrieving it. Banks and other financial institutions can use KYC to keep track of their customers' transactions. This also helps to connect all of your capital market activities to your bank account and tax returns, filling in any reporting gaps. For mutual fund accounts, demat accounts, and trading accounts, SEBI has made KYC compliance mandatory.

Important steps in the demat account KYC documentation process

If you are a new investor, the first step is to complete the KYC form and open a demat account for the first time. Name, residential address, office address, joint account holder information, account nomination, and other information are requested on the application forms.

The next step is to show your proof of identity. Apart from the PAN card, which is required, you will usually be asked to show additional government-issued identification such as a passport, driver's licence, voter ID, Aadhar, and so on.

The next step is to provide confirmation of your current residence address. The most recent address must be included in the document in the exact format. Utility bills can be accompanied by link documents or other documents such as bank statements, corporate letters, and so on.

Finally, a copy of your cancelled check with the account holder's name clearly embossed on the cheque leaf must be submitted. This is to ensure that your IFSC code and account information are correct.

While all of the above papers must be submitted as photocopies at the time of KYC, you must bring the originals with you for spot verification.

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Shivkumar P. Email: compliance@indiratrade.com. Call : 0731-4797275

Investor grievance complaint : complaint@indiratrade.com

INVESTOR CHARTER