KRAs issue guidelines for simpler KYC process
KYC process for investors due to new guidelines that came into effect on April 1, the five KYC registration agencies (KRAs) — CDSL Ventures (CVL), NSDL Database Management (NDML), CAMS, Karvy, and Dotex have come with guidelines to simplify the process.
All KRAs put together hold the KYC records of 108.3 million investors and facilitate storage and modification.
Of these, 73% of the KYC records are under 'KYC Validated' status, 15% are under 'KYC Registered' status and the remaining 12% are under 'KYC On-Hold' status.
For investors whose status is 'KYC Validated', no action is required and they can transact in the securities market without resubmission of KYC documents.
Investors whose status is 'KYC Registered' can continue with their existing systematic investment plans (SIPs) already registered with mutual funds. If such investors wish to open a new account or a new folio with a new fund house or Sebi-registered intermediary, a fresh set of KYC documents needs to be collected afresh to onboard the investor. Such investors can undergo a re-KYC process by submitting PAN / Aadhaar and have the KYC status updated to 'Validated', to make further investments.
If the KYC status is 'On Hold' then the investor has to compete 'PAN-Aadhaar Seeding' in income tax records to make the PAN operational. After that, the investor has to share the updated email and mobile number with any of the chosen intermediaries to update the same in their records and lodge a modification request with the KRA. Once the KRA receives the
