Avoid misuse of Documents submitted while opening account

Hello there,

I just want to ask that brokers take our documents like Aadhaar Card, PAN Card, and other details like Bank statement, income proof etc for opening new Demat and trading account with them.

But submitting these documents is safe?
And any guarantee that it will not be misused.

The actually case is:
Before joining zerodha, I had a account with another broker. For opening that account I’ve submitted my docs via WhatsApp to Sub Broker. Later there was some additional charges were taken from me without letting me know. I opposed them and closed the account with them. The sub broker with whom I submitted the docs blocked my number texting me some abusive words.

Then I just want to know that the documents I submitted him, can he misuse it? And as I already closed account with them and I’ve got akowknowlegment reciept from both the Brokerage and CDSL, can I be assured they they will not manipulate my account and start using some unethical things?

I regret for long question but I’m sure one gets this question in mind, when he loss all the trust from any brokerage.

Thank you!

Dear @ShubhS9 can you please help me in this matter also?

Hard to say. Maybe reach out to the broker and tell them that you had submitted the docs to a a partner and ask them to instruct him to delete them.

Thanks for responding but let’s say I approach the broker also then also there is no guarantee that the sub broker will delete that documents.
Even he had my documents, at what level he can misuse it?

Eg: By manipulating my account and start unauthorized trading or will try to hack my bank account etc?

Documents you may submit to your broker or any financial intermediary:

  1. Address proof
  2. Identity proof
  3. Income proof
  4. Photograph
  5. Signature

The stockbroker is required by the Anti money laundering act to keep record of these documents for at least 5 years after the relationship with the client has ended. Although, the documents are with him, he will not be able to:

  1. Use your documents to get money from your bank account - since he won’t have your banking credentials
  2. Use your documents to get access to your demat account with other brokers - since he won’t have the required credentials

The above list is not exhaustive and can include other examples. Perhaps, you could specify your concerns?

1 Like

Thank you so much for responding.

The Documents I submitted to that sub broker were:

  1. Aadhaar Card
  2. PAN card
  3. 6 months Bank statement

I’ve not submitted photograph and signature because that broker used E sign via aadhaar. Now do I need to worry or anything?

One more thing:
While opening account that sub broker opened account in all segments.
While closing In akowknowlegment they said they closed trading account in these segments:

BSE-CAPITAL,MCX-FUTURES,NCX-FUTURES,NSE-CAPITAL,NSE-FUTURES,NSX-FUTURES

Please let me know if there is any another segment remaining?

Thank you!

Ask broker in which segments were used while opening an account. Better communicate via registered mail address. If no response received, raise a complaint with exchange or SEBI.