KYC
KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds and the nature of customer’s business. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering. Compliance with KYC is mandatory for investing in financial instruments. KYC compliance has taken many avatars prior to current state of affairs whereby you need to do a KYC with your bank and another one for investing in capital market products (Mutual funds & Stocks). The KYC done with the bank is sufficient to buy Insurance products as well. However to invest in any capital market products, you need to do a separate KYC. This KYC is valid to invest in Mutual funds (direct or through intermediaries), stock brokers and to avail portfolio management services. To do your KYC, you need to ...