Digital KYC On Securities & Trading/Demat Accounts
Digital KYC has become common, thanks to the internet and online trading platforms. The Securities and Exchange Board of India (SEBI) has made it mandatory for retail to complete the KYC process at the time of registering with the brokerage. It enables the brokerages to get to know their customers and also assess their risk appetite, financial standing, and knowledge of investing. As a result, when the brokerage provides advisory services, they will know what to include in that specific customer’s investment portfolio. Another reason for KYC is to prevent fraud and minimize money laundering. It brings about transparency that shows the money trail and allows SEBI as well as banks to trace the source and destination of the funds used by the customer. It also protects the investor from theft and loss of assets due to fraud. Before the advent of digital KYC, it used to be a long process to get verified. However, digital KYC has made things easy, quick and convenient. You will fi...