Investing in financial instruments like term deposits, mutual funds, and more, customers of the financial service are needed to present KYC evidence to verify their identity and address.
Online or via e-KYC Online submission of your identification and address proofs via KYC is a successful method.
It is a regular procedure used by the Indian government to verify the legitimacy of users on a portal.
The regulators’ and depositors’ actions will ultimately help customers. It will reduce the risk and shield you from dishonest behavior.
To trade in the derivatives market, including commodity derivatives, a broker must get financial evidence from each client per the rules of the exchange.
As per Exchange requirements, these financial proofs must be checked regularly.
Goals of a Demat Account
Think of this account as similar to a bank account where your money is kept. Your securities are similarly held in this account. Stocks and shares are electronically transferred to your account.
The establishment of depositories such as the NSDL and CDSL that would keep these accounts was made possible by the Depository Act, which was passed in the same year.
The National Securities Depository Limited was established in the same year, enabling India’s first dematerialized accounts that met international standards.
How does the Demat account work?
The account is debited when shares or other securities are sold. To engage in stock and securities using your Demat account, you must link it to your trading and savings accounts.
In addition to keeping securities in a DP’s (depository participant) Demat account linked to the NSDL or CDSL, one can store money electronically in a savings account.
The operation of a Demat account is comparable to that of a bank savings account.
Criteria to update KYC
Your current KYC information will be shown after you log in. According to the notification, one of the necessary KYC details must be updated in your name.
If nothing has changed, select “Proceed with the same details” to continue. You can amend your account information following your Aadhaar if any changes are necessary for your name.
You would need to update the depository database with the same information.
After opening your Demat account, you moved; therefore, you should update your KYC information to reflect the new address.
You would have given the address when opening the Demat account; thus, it is something you already have. You may keep your current address if there hasn’t been any change.
In light of the fact that it is now required, if you were one of the people who opened a Demat account without giving your PAN, it would be wise to do so immediately. It was unnecessary to disclose your PAN to open a Demat account.
You’ll be taken to the FATCA page, where you must provide your tax residency, income bracket, and other personal information.
You must perform a fast in-person verification using your front camera or webcam on a computer. The page will take a little video.
Mobile or email
Your data is saved and sent for verification; confirming a one-time password will be sent to the registered email address, or mobile number is necessary.
Demat account statements and other information will be routinely delivered to your registered email address or cellphone number.
Your mobile number is crucial information that must be kept current and on file at all times.
Your mobile phone number or email will be used to promptly notify you of any information or changes about your Demat account. For this reason, always updating your depository’s records is essential.
One time password
Press the “Submit” button once the OTP has been properly typed. Your information is currently being reviewed, and you will be informed in the coming days whether your KYC verification was completed without errors.
You would also need to adjust your annual income range in your depository’s record.
The depository participants have mandated the disclosure of the income range. Your income range is a crucial factor that is likely to fluctuate frequently.
To indicate the salary range, you must complete and submit Form 9, the account opening form for people, or Form 11 for non-individuals. Because of this, SEBI has required that this detail be updated.
- Last six months’ worth of bank statements latest
- Recent three-month pay stub copy of the acknowledgment of ITR
- A copy of Form 16 for income from salaries
Things to keep in mind updating KYC
- The document template is recognized as genuine when the most recent documents are uploaded as proof and put through several tests to ensure it hasn’t been altered.
- Please be aware that for this reason, a family only consists of oneself, one’s spouse, dependent parents, and dependent children.
- A physical visit to a bank, mutual fund office, or KYC kiosk with copies and originals of your most recent documents would constitute an offline KYC update.
- For the digital KYC process, this is the last level of examination that a person’s application undergoes.
- Because websites and other portals alert people when their details do not match their current ones, offline KYC changes are less frequent than online ones.
- Everyone who holds a Beneficial Owner (BO) account must furnish unique email addresses and mobile numbers.
- To proceed with any financial transaction, you must update your KYC.
- A BO can update your family members’ mobile numbers and email addresses by filing a written declaration.
When should you update KYC
- Many of your KYC documents, including the Aadhar, PAN, driving license, and passport, would need to be updated if you changed your residence, such as moving into a new home after getting married, leaving your home, or relocating to a completely different city. This is the time to update your KYC via the online portal.
- This procedure is typically regarded as a one-time way to access your financial history and conduct transactions if you do not change your address or name for a second time. If you have modified your personal information once again, you must update your KYC.
- Your PAN card, Aadhar card, and most recent passport would all have a different name if you were to change it officially. You must include scanned copies of your most recent Aadhar and Pan cards to update your KYC.
Amit Gupta is the creator of FreeDematAccount.in, a website that specializes in Demat accounts and provides assistance to all its users in navigating through complicated decisions. After completing his high school certification, Amit spent half a decade learning about Demat accounts from brokerages. Before forming FreeDematAccount.in, Amit worked for a Demat account brokerage.