What is KYC What are the document require for KYC?
Ever since the Reserve Bank of India
(RBI) has issued the Know Your Customer (KYC) guidelines in 2002, The
Securities and Exchange Board of India (SEBI), the regulatory body for stock
trading in India has adopted it and made KYC norms mandatory for all the
investment related activities such as opening a demat account, opening a trading account, mutual fund investment,
etc.
KYC full form (Know Your Customer and sometimes Know Your Client)
KYC norms were introduced by the RBI to
reduce corruption in equity trading. With KYC coming into effect, it has become
easier for the government, banks and other financial institutions to track your
financial transactions. It facilitates authorities to track the
incoming and outgoing funds in and out of your account.
Since
KYC has been made mandatory for demat account opening by SEBI, you are required
to provide complete KYC documentation for opening a demat account. When you submit your
documents for the KYC
process, your data gets stored in the comprehensive central database
which can be easily accessed by the authorities with the help of your linked
PAN.
KYC
helps the brokers and depository participants to verify the credentials of a
person willing to open a demat
account to begin trading and investing. Furthermore, the KYC process ensures that
the investor’s investment and earnings
through a trading and demat account are traceable through proper banking
channels. It helps to curtail any kind of fraudulent activity or transaction in
the trading process thus ensuring a safe trading experience.
Documents Required to Fulfill KYC Norms
for Demat Account
Opening
For
opening a demat account,
you need to submit the below-mentioned documents to fulfill the KYC norms:
·
Proof of identity (PAN card along with
photograph / Aadhaar card / passport / voter’s identity card / driving license
/
·
Proof of address (PAN card along with
photograph / voter’s identity card / driving license / passport / ration card /
utility bills like telephone bill, gas bill, electricity bill, etc. not more
than three months old / bank account statement or passbook / sale agreement of
residence or registered lease
·
Bank account number along with a cancelled
cheque
·
PAN card
Expedite KYC with Aadhaar based e-KYC
With
Aadhaar based e-KYC, you can quickly and easily open a demat account and trading account in just a few minutes. The
process is completely online and paperless. It uses a biometric Aadhaar card or
mobile linkage with OTP authentication to verify your identity. It eliminates
the need for tedious in-person verification.
To sum up
In
order to activate your demat
account, you need to fill out the
KYC form
and complete the KYC procedure. KYC compliance ensures a safe trading
atmosphere and eliminates negative elements from the process, making it a
reliable platform for genuine traders and investors.
Start
trading by opening a free demat account with Indira Securities.