Thanks for the mention and sorry for the delay in response.
While opening a Demat account the data is pulled from Aadhaar & PAN, so no manual typing or writing is needed (at least for name, DOB etc). Now that a dot is there in your name, it seems to be a technical fault (no worries for you). A simple re-kyc will solve everything. Just make sure your name is correctly spelt in your Aadhar & PAN and the PAN is linked with your Aadhaar.
As you mentioned the executive of the broker said that CDSL needs a middle name mandatorily is a lie. There is nothing like this. I donât have a middle name and no one asked for one, as per my experience with 4 different brokers.
There is no harm in doing the KYC again since your data is already registered with KRAs and brokers just verify them. Also, you donât need to close your account just for this reason. If after the re-kyc the name is not rectified then you may complain to SEBI or consider changing the broker. Make sure your KYC is validated Why did the KYC Registration Agency (KRA) send an email and SMS informing about KYC details validation?
You asked how will you know if your name was rectified. There is something called CMR (client master report) some call it CML (client master list) (@Team_Rankings asked).
It is like the first page of the bank passbook which contains information about you and your demat account. Every time any detail (even if bank account) is changed a copy of the CMR is sent to you by CDSL (not sure about NSDL). Alternatively, you may also get a copy when you need it from your broker (Zerodha has the option to request it inside the dashboard).
Lastly, itâs not advisable to make any mistake in your details in any of your accounts. So donât just close it with the error rather fix it.
I hope I have answered all your queries, if you still have any donât hesitate. Please name the broker so that we all are aware of the services of the other brokers.
Suppose I have to account with different brokers one is with Zerodha and other with Groww. Old account is with zerodha and new account with Groww. Suppose Groww updated my incorrect name with CDSL and exchanges then it will create issue for old account too?
I mean does exchanges only holds one record for a Pan card holder? Or else exchanges holds different records for every broker for a Pan card holder?
You may face challenges later if closed with an issue. No one knows what may happen in the future so my suggestion would be to just be on the safer side.
Try to contact them on other channels such as email, twitter (donât fall for cybercrime) etc. Or you may simply write to their compliance officer or SEBI.
Give some time exchanges will update it automatically. You just keep your demat account updated coz everything else will be updated based on demat. Donât bother about things which you donât have direct login to. Alternatively, you may check (email) alerts from the exchanges such as trade alerts & fund balance for reference. You may also email the exchanges for any query.
Let me explain this with an example. Suppose you did your signature in hindi in your new account (Groww) compared to in English in your old account (Zerodha). Now Groww will update your new signature (hindi) in the respective KRA and you may receive the modification alert from the KRA along with the modified details and CKYC number.
Now this doesnât affect your Zerodha account unless you authorise Zerodha to fetch and update your latest details from KRA such as re-kyc. Technically exchanges donât hold the personal data of the investors, itâs the KRA and depository that holds KYC and other details of the investors. Exchanges just facilitate the transaction and all the data is mapped with the investorsâ PAN. If an alert is sent to the investor then itâs sent like this:
Investor's PAN >> Investor's email >> Investor's mobile
This month investorâs email may be [email protected] and next month itâs changed to [email protected]. Since the change is done in the demat, the exchangeâs software will trigger the alert to the investorâs email (latest email). Here investorâs email is not an actual email id itâs a field where any data (email id) may exist and the software will send the alert to the data (email) that is input in the field.
The last part was too technical but thatâs how the software work. BTW good question.
PS: This is as on my experience with different banks and brokers.
Sir, Thank you so much. I received the email that my name is corrected by them. So now if I close the demat account with them will it create problems for me in future. What if they again do mistake while account closure process then what can I do. However, I am thinking to complain to SEBI about that broker. Even they are saying that my name is corrected by them but still this mistake should be in eyes of SEBI too to keep me on safer side.
If any Issues arises in future will rekyc sort it out? Or I have to struggle. However, I will close the account with that broker and remains with Zerodha.
Please reply to this @rokingrammi_ji8011 asked me about this but I am not able to answer.
Account closure has nothing to do with any kind of modification. It will just mark the account closed given that there is no money and securities in the account. A CMR will be sent after closure.
After closing the account you wonât be able to perform re-kyc
Listing out the queries from the thread and answering them below.
For illustration, consider your demat account as your savings bank account. Like one can have multiple bank accounts as per needs, one can have multiple demat accounts.
How can I verify whether my correct name has been updated by the exchanges?
The name on your demat account is mapped to the exchanges. As mentioned in the thread, you can request a CMR/CML copy from your broker, which is like a passbook front page. Now, will you go and crack your head on if banks have updated the necessary records? No right? The source of truth for you is your confirmation from your bank. Similarly, if your broker has confirmed that your name is correct and you are satisfied, you donât have to worry. Exchanges run reconciliations of broker/depository records and flag any mismatches. Brokers are expected to verify and update the records to avoid non-compliance(this non-compliance will be marked to the broker and not you), which is the standard practice across the financial industry. Brokers maintain your records with related entities and ensure a smooth journey for you. In short, you can ask your broker to confirm the name on their records, and if itâs correct, you do not have to be worried.
Are details on exchanges for one PAN Card/investor separately registered from different brokers?
PAN-level data is maintained by KRAs (KYC Registration Agencies). Every time there is a modification to your KYC data, KRAs conduct due diligence before updating the records. Since you hold multiple accounts with the same PAN across brokers, exchanges create a Unique Client Code (UCC) for each customer. The records you maintain with a broker are updated to the respective UCC.
If I have accounts with different brokers (e.g., Zerodha and Groww) and Groww updates my incorrect name with CDSL and exchanges, will this create issues for my old account with Zerodha?
A broker must verify the name as per the Income Tax database before updating it. The updated name is then verified at exchanges, and the records at exchanges are updated accordingly. If the records donât match, the exchange segments are marked as âNot permitted to trade,â meaning the exchange doesnât allow you to trade until the records are correctly updated. Therefore, a broker cannot update the name randomly. If you are able to trade, thatâs a clear indication that your records at respective exchanges are up to date.
If I close my demat account with Groww after receiving confirmation that my name is corrected, will it create problems for me in the future? If I close the account with Groww and remain with Zerodha, will there be any future problems?
Closing your account will end the broker-client relationship and will not create any future problems. As long as there are no serious issues, like fraud, associated with your Groww account, closing it should not create any future problems.
If any issues arise in the future, will re-KYC sort them out, or will I have to struggle?
This depends on the brokerâs process for updating records. Different brokers have different processes, and your experience may vary. Choose a broker with comprehensive facilities to minimize any potential struggles.
I hope I have answered your questions. If you still need more help, since you mentioned you hold an account with Zerodha, please create a ticket; we can get on a call and explain further.
