What are the differences between KYC Registered (New KYC) with CVLKRA through a SEBI Registered DP and CKYC? Is KYC a one time exercise and need NOT be repeated while approaching to other Intermediaries, Mutual Funds/SIP AMCs, FIs & Banks, etc.?
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SEBI setup the KYC registration agency (KRA) in 2011. The move to set up KRAs was done with the intention to benefit the investor by not having him/her submit KYC documents to multiple intermediaries again and again. All SEBI registered intermediaries (Stock Brokers, DPs, MFs etc) were required to upload details of KYC to the KRA within 10 days of opening the account.
To explain with an example: If you opened your first trading & demat account with broker X, then broker X is supposed to collect your KYC documents (Address proof, Identity proof) and upload them to the KRA agency, the unique identifier being PAN. Assuming you aren’t satisfied with the services of broker X and choose to open an account at Zerodha, Zerodha will not insist on you providing your KYC documents again. It’ll merely search with your PAN in the KRA database and download the copies of the document previously uploaded by broker X. If your address hasn’t changed, you may proceed with your account opening by only giving your bank account details (bank account details aren’t part of KYC) and signing the forms.
The concept of KRA was limited to SEBI registered intermediaries alone and did not encompass KYCs of clients done by Banks, Insurance agencies etc because they were regulated by other regulators like RBI, IRDA etc.
The Ministry of Finance then decided to bring the Central KYC agency (CKYC) to cover the entire BFSI sector. Going forward, if you open a Bank account/Insurance account/Broking account, the intermediary has to perform your KYC and generate a 14 digit CKYC number. Once this is generated, the next BFSI intermediary you go to avail any service, you just have to mention your 14 digit number and they’d be able to fetch all your documents.
For now, Brokers are being insisted on doing KYC uploads to both KRAs and CKYC. My guess is sometime in the future, the KRA data will be merged with CKYC and CKYC will stand as the lone KYC agency.
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Looks legit bro
It’s legit bro, I haven’t applied separately for ckyc, Zerodha did that for me.
Hi VM1
Thanks a lot for your detailed narration pin-pointing the differences between KYC and CKYC. I am a Zerodha client. I have done IPV online with them to open a Demat A/c in August 2019. Can I expect CKYC from the Central KYC Registry automatically or do I have to submit any form separately? Your comments, please?
Hi, Sabyasachi Sadhu,
Thanks for your information on CKYC.
I understand that you, being a Zerodha client, have been registered with central KYC Registry without applying/submitting any forms separately. May I request you to let me know as to how many months it took you to get your KYC details registered with the Central KYC Registry? Did you do IPV online while registering with Zerodha for Demat A/c?
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Hi, it was almost instant (max 2 days), no I didn’t submit any hardcopies, only hardcopy was bank mandate (not part of kyc anyway) all were done through online, yes I went through online IPV.
Hi to all,
It has been almost 2 (two) months since I had opened a Demat & Trading Account with Zerodha, but I have not received the CKYC No. till NOW. I have been exchanging emails with Zerodha support Team but all my efforts have gone in vain. I am now contemplating to write to the CEO/MD of Zerodha or SEBI. Can any well-wisher provide me the E-mail IDs of Zerodha CEO/MD and SEBI through this forum?
Hey, although this isn’t a place to raise queries specific to your account at Zerodha, please DM me your client id/ticket number to check.
@VenuMadhav
I need to update my last name so that all my MF folio names are update including account with zerodha. Could you guide me on the process pls.