{"id":39473,"date":"2024-04-30T20:43:46","date_gmt":"2024-04-30T20:43:46","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/30\/incomplete-kyc-1-3-crore-investor-accounts-on-hold-times-of-india\/"},"modified":"2024-04-30T20:43:46","modified_gmt":"2024-04-30T20:43:46","slug":"incomplete-kyc-1-3-crore-investor-accounts-on-hold-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/30\/incomplete-kyc-1-3-crore-investor-accounts-on-hold-times-of-india\/","title":{"rendered":"Incomplete KYC: 1.3 crore investor accounts on hold – Times of India"},"content":{"rendered":"
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MUMBAI: KYC registration entities, KRAs in market parlance, on Tuesday said out of nearly 11 crore investors under Sebi\u2019s regulatory purview, about 1.3 crore accounts are \u2018on hold\u2019 (meaning these investors can\u2019t transact in stocks, MFs and commodities using these KYCs) since these do not conform to Sebi rules for various reasons. The five KRAs jointly came out with a detailed release as there were cases where investors were not sure if their KYCs, even if done properly, would allow them to continue to invest in stocks, commodities and MFs.
The need to reclassify KYCs under various categories arose after it was found that KYCs of many investors were still not updated with PAN and Aadhar, and the linkages were missing.Several of these KYCs were done using documents like utility bills (electricity, telephone), bank account statements etc, which are no longer accepted as valid documents for KYC compliance by Sebi.<\/p>\n
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Effective April 1, under the updated KYC compliance process, KRAs have categorised each investor\u2019s KYC in three categories: validated, registered and on hold. The categorisation was based on availability of PAN, Aadhaar, email and mobile number of the investors, an official from a KRA said.
Investors with validated KYCs don\u2019t need to act and can continue their investment process. Those with registered KYCs can also continue their investments but will need to resort to the re-KYC process if they invest in any new fund house or open a new demat account.
KYCs that were done using bank statements, utility bills and other similar documents are on hold now and investors with these KYCs can\u2019t invest anymore. They would also not be allowed to withdraw funds unless they update KYC documents.
Of nearly 11 crore investors, about 7.9 crore or 73% have valid KYC, a release from the KRAs said. KYCs of about 1.6 crore investors are under the registered category, who now have limited access to investing, while 12% of the total can\u2019t operate their demat accounts and MF folios.
\u201cInvestors can verify their KYC status through any of the KRA websites under \u2018KYC inquiry and initiate action,\u201d the release said. Investors can also modify their KYCs through the websites of their brokers and MFs. And if the KYC is modified once, that will reflect on all their investments like stocks, MFs and commodities. Investors need not update their KYC with each broker and fund house they have accounts or folios with.<\/div>\n