KYC News: KYC done using bank details, utility bills and other similar documents has now been stopped and investors with these KYCs can no longer invest, they will also not be able to withdraw funds unless they update the KYC documents. Will not be allowed.
KYC registration bodies or KRAs on Tuesday said that out of about 11 crore investors under the regulatory ambit of SEBI, about 1.3 crore accounts are on hold. This means that these investors cannot transact in stocks, mutual funds and commodities using them. Because, these are not in accordance with SEBI rules due to various reasons.
The five KRAs have jointly issued a detailed communiqué. The need to reclassify KYC under different categories arose when it was found that the KYCs of many investors were still not updated with PAN and Aadhaar. Many of these KYCs were done using documents such as utility bills (electricity, telephone), bank account details, etc., which are no longer accepted by SEBI as valid documents for KYC compliance.
As part of the KYC updating process effective from April 1, KRA has classified the KYC of every investor into three categories. These are three categories, validated, registered and on hold. A KRA official said the classification was based on the availability of PAN, Aadhaar, email and mobile number of investors. According to KRA, out of approximately 11 crore investors, about 7.9 crore or 73% have valid KYC. Around 1.6 crore investors are under KYC registered category.
Investors with valid KYC do not require updation and can continue with their investment process. People with registered KYC can also continue their investments, but if they invest in a new fund house or open a new demat account, they will have to go through the reKYC process.
KYC done using bank details, utility bills and other similar documents has now been stopped and investors with these KYCs can no longer invest, they are also not allowed to withdraw funds unless they update the KYC documents. Will go.
