KYC
The know-your-customer process of verifying an investor's identity, address and financial details before market access is granted.
How it is identified
Test: identity, address and PAN are verified against prescribed documents and recorded with a KYC registration agency
Unit
qualitative
In depth
KYC is a one-time process across the securities market: once completed with any registered intermediary and recorded with a KYC registration agency, it is available to all others, so a second broker does not require a fresh process. Its purpose is preventing money laundering and identity fraud, and it also captures risk profile and income details that determine what products can be offered. KYC records must be kept current, and a change of address or bank details requires updating — accounts with mismatched details get frozen at inconvenient moments. Periodic re-KYC requirements apply, and ignoring the notices leads to restricted transactions.
Worked example
An investor with completed KYC opens an account with a second broker in minutes rather than days, because the KYC registration agency already holds the verified record and the new broker simply fetches it.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “KYC” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.