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How to Update KYC Details in Demat Account Online

7 Mins 25 May 2023 0 COMMENT

What is KYC in Demat Account?

The Reserve Bank of India (RBI) established the KYC norms in 2002. KYC is short for “Know Your Customer” and is a common procedure followed by financial institutions in India to verify and validate customers. The Securities and Exchange Board of India (SEBI) has mandated KYC compliance for all investment-oriented activities, including the opening of Demat accounts, investment in mutual funds, opening of savings bank accounts, and so on. 

The customer details required for KYC in the Demat account include name, address, and signature. In addition, customers need to furnish photo ID cards, such as Aadhaar card, passport or driving license, to verify these details at the time of opening the account and for periodic KYC updates.

Importance of KYC in Demat Account

It may appear to be a mild inconvenience, but the KYC process has an important role to play. Here are three ways how KYC helps financial institutions:

  • Secures the Demat and Trading Account: With the KYC process in place, the account holder feels better with the added security and the financial institution can stay assured that the transactions are being carried by the account holder.
  • Prevents Money Laundering and Financing of Anti-social Activities: Hiding one’s identity is impossible with the KYC process. This prevents money laundering and funding of anti-social activities. 
  • Aids in Performing Risk Assessment: Lenders can easily perform a risk assessment before lending to the customer by checking their financial history and assets owned.

Steps to  Demat Account KYC Update Online (e-KYC Update for Demat Account)

 

 

Here are five simple steps to update the KYC for Demat account online:

Step 1: Log in to your online trading app.

Step 2: Locate the “Update KYC” section, tab, or page. Click to open the KYC form.

Step 3: You will see the details that you entered at the time of registration or opening the account. Check the details, including your full name, residential address, commercial address, account nomination, joint account holder information, and so on. Update the form wherever required.

Step 4: Submit a government-authorised ID proof such as your Aadhaar card, passport, voter card, driving license or PAN card. In addition, you must submit your address proof using your Aadhaar card, passport, voter card, driving license, the latest electricity or water bill, and so on.

Step 5: Submit a copy of a cancelled cheque on which your name is clearly embossed to verify your name, IFSC, and account details.

Step 6: Use your phone camera or computer’s webcam to complete the in-person confirmation.

KYC is a mandatory procedure that all Demat and trading account holders need to complete to use their accounts for buying and selling stocks and transferring existing shares. In the case of non-compliance with the KYC mandate, the Demat account will be rendered dormant, and the account holder will not be able to carry out any transactions.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

Steps for Demat account KYC Update Online (eKYC update for Demat account)