The Securities Exchange Board of India (SEBI) recently released a new KYC form which will be one time process for opening accounts including demat account, savings account or insurance account etc.
Central KYC Records Registry (CKYCR) would receive, store, safeguard and retrieve the KYC records in digital form of a client.
The live run of the CKYCR has started with effect from July 15, 2016 in a phased manner beginning with new individual accounts. Further, "Test Environment" has also been made available by CERSAI for the use of the reporting entities.
Here are 6 must-know points on New Central KYC form:
1. Any registered intermediaries will upload the KYC data with CKYCR, in respect of all individual accounts opened on or after August 1, 2016.
2. As per the new Sebi rules, all investors should provide mother's name and proof of permanent address if it is not same as correspondence address. One should also disclose 'maiden name'.
3. As per the reports, Sebi's e-KYC programme uses Aadhaar and One-Time Password (OTP) through mobile phones for authentication of individual investors.
4. There are three types accounts available. Normal KYC , second is Simplified KYC which is for low-risk customers and third is KYC for Small investors.
5. Individuals opening 'Small Accounts', are needed to fill personal details in section one of the template together with the photograph, signature/thumb impression and self-certification document should be obtained.
6. The new Central KYC Registry system, includes more and just Aadhaar and PAN will is not sufficient.