Stock market: Investors active in the stock market and mutual funds trading whose Know Your Customer (KYC) credentials are found to be inconsistent with the officially valid documents (OVDs) have been asked to update their information before March 31, 2024. That means just one day is left to update the KYC information. Failure to do so will result in the invalidation of KYC status.
However, it is crucial to note that this requirement doesn’t apply to all. Investors whose KYC records have been successfully verified using the accepted OVDs, coupled with confirmed mobile numbers and email addresses, are exempt from undergoing this verification process.
A circular by CDSL Ventures dated March 28, 2024, stated: “For such older KYC cases (i.e. Non Aadhaar-based KYC records lodged up to August 2023), where the KYC record meets the PAN – Aadhaar seeding validation (where applicable and already implemented w.e.f. July 01, 2023) and Email / Mobile are validated by KRA and the KYC record is in verified (KYC Registered) status with KRA, such investors will be allowed to continue transacting in securities market with their existing intermediary. However, these investors would need to undergo fresh KYC as per the extant framework for getting onboard with any new intermediary. Accordingly, it may be noted that such older KYC cases where email ID/mobile number validation is not successful, such KYC records would need to be put ‘ON HOLD’ in the KRA system with effect from April 01, 2024.”
Therefore, investors whose mobile number and email ID are verified and the address proof document given by them is on the list of officially valid documents (OVD), then re-KYC is not required.
However, those who have not submitted OVD documents and have done their KYC formality, they will require to undergo a new KYC process with a new intermediary.
Points to note
> If mobile number and email ID is not verified, but address proof has a valid OVD, KYC status will be put on hold.
> If PAN is submitted with OVD, then it should be Aadhaar card.
> In the event that an investor has chosen not adhere to Aadhaar as a means of providing proof of address, they need to present an alternative document. This particular document should be valid and correspond with the specified OVD (Officially Valid Document) list deemed acceptable for verification purposes.