KYC is a one-time exercise while dealing in securities markets – KYC is
done through a SEBI registered intermediary (Stock-broker, Depository Participant,
Mutual Fund, Asset Management Company etc.).
As per the SEBI, investors have to complete the KYC process by validating
their email id and phone number through OTP and verification process. Click Here
to SEBI Circular, KARVY KRA (KYC Registration agency) empanelled under the SEBI
ecosystem to maintain KYC repository.
In case of any change in KYC details, please submit a change request form
along with the supporting documents with any Stock-broker, Depository Participant,
Mutual Fund, Asset Management Company etc., with whom you transact.
The provisions of The Prevention of Money Laundering Act, 2002
(PMLA) and KRA Regulations (2011), has made it mandatory for all Market Participants
to comply with the 'Know Your Client' (KYC) norms. In this regard, KARVY KRA has
created the necessary modules in order to handle the KYC in accordance to the KRA
Regulations (2011).
KYC and Client Due Diligence (CDD) policies as part of KYC are the foundation
of an effective Anti-Money Laundering process. The KYC process requires every SEBI
registered intermediary to obtain and verify the Proof of Identity (PoI) and Proof
of Address (PoA) from the client at the time of commencement of an account-based
relationship. 3. The registered intermediaries shall not open or keep any anonymous
account or account in fictitious names or account on behalf of other persons whose
identity has not been disclosed or cannot be verified. The intermediaries shall
also continue to abide by circulars issued by SEBI from time to time for prevention
of money laundering.
SEBI registered intermediaries shall perform KYC in securities market
through physical mode/ digital (online or app based) mode. To bring about uniformity
in securities market, all SEBI registered intermediaries shall use the same KYC
form and supporting documents. Foreign Portfolio Investors and Eligible Foreign
Investors shall be guided as per provisions of SEBI Circular SEBI/HO/AFD-2/CIR/P/2022/175
December 19, 2022 and amendments thereto.
