Why don’t we use same kyc where client already registered in Banks or Mutual Fund Organisation?
Suraj…Think about it…would you allow anyone and everyone to enter your home? No right ? You would want to know who is coming home and what they want right?
Likewise, from the nation’s perspective (and most of our perspective) markets are as sacred as an individual’s home… …so the nation needs some method to keep a tab on who is checking in…and that method of keeping a tab is called KYC , meaning Know your Client…or “Know who is coming home”.
The government enforces KYC through brokers, agents, firms etc and forces them to know who they are dealing with, just to ensure, to some extent that there are no trouble makers.
So like most people perceive KYC procedure is not a pain…but it is for our own well being! So it is totally justified to make it mandatory.