KYC Disrupted: SEBI Allows Online KYC For Investors; eSign, Digilocker Can Be Used Now
Securities & Exchange Board of India (SEBI) has not only simplified the know-your-customer (KYC) process but has also allowed registered intermediaries (RIs) to use online KYC and technology or apps.
SEBI has allowed the usage of eSign, Digilocker and electronic signature as permitted by the Indian government.
Read to find out more…
Online KYC Form for Investors!
SEBI said in a statement, “The enablement of eSign, Digilocker and electronic signature would facilitate investor to submit their officially valid documents (OVDs) (proof of identity and proof of address), for the purpose of KYC to the SEBI intermediary’s online or digital platform, app, through e-mail or electronic means. SEBI has also allowed eSign mechanism for affixing cropped signature on the KYC form and on the copy of OVD of the investor.”
The market regulator further says, “While enabling usage of technology, the intermediary is also required to verify the investor mobile number, e-mail id and the bank details (through penny drop) to cross verify the information provided by the investor.”
Intermediary is required to verify the copy of the OVD provided by the investor with the original OVD. However, SEBI says, for ease of the investor, the OVD should be deemed to be seen and verified with the original, wherein the investor through the eSign mechanism provides the OVD as a clear photograph or scanned copy of the original or provides the same as digitally signed document issued to the DigiLocker by the issuing authority.
SEBI says it has also permitted the implementation of the app by the intermediary, which would be used for the purpose of online KYC and video in-person verification.
In addition it said, “The App shall facilitate taking photographs, scanning, acceptance of OVD through Digilocker, end-to-end encrypted live audiovisual interaction with the customer, usage of the app only by authorized persons of the RI. The app shall have safety features including guard against spoofing and such other fraudulent manipulations. The enablement of usage of App would facilitate the intermediary to undertake KYC in a seamless, real-time, secured manner as well as save time and money.”
How to Submit the KYC Form?
SEBI has allowed the investor to complete the KYC process by filling the online KYC form.
The completed online KYC form could be submitted by the investor to the intermediary:
- By taking a print out of the completed KYC form and after affixing their wet signature, send the scanned copy or photograph of the same to the intermediary under Esign, or
- Affix online the cropped signature on the filled KYC form and submit the same to the intermediary under Esign.
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