What is KYC (Know Your Customer)?

KYC is the identity verification SEBI requires before you open a demat account: PAN, Aadhaar linked to your mobile number, bank details and a video or in-person check. The process is paperless through DigiLocker, takes about 15 minutes, and the same KYC works across brokers and mutual fund houses.

The four documents, exactly

PAN card, Aadhaar linked to your mobile (for OTP verification), bank account details for funds, and your signature. The Aadhaar mobile linkage is the step that most often stalls applications: the OTP goes to the number registered with Aadhaar, not your current SIM unless they are the same.

Why the video call exists

In-person verification was once a branch visit. Video KYC replaced it: a short call where the agent verifies your face against your documents and you answer a few scripted questions. The call is recorded and retained per regulation. If your documents have mismatches (name spelling, old photo), the call is where it surfaces.

One KYC, many uses

KYC done with one SEBI-registered intermediary is valid across others. Open a second demat account or a mutual fund folio later and the checks are already done. The KRA (KYC Registration Agency) holds the record, and you can check your KYC status online before applying anywhere.

Checking and updating your KYC

KYC records sit with a KYC Registration Agency (KRA), and you can check your status online with your PAN through the KRA portals such as CVL KRA, CAMS KRA or NDML. Updates, like a change of address or mobile number, go through your broker or directly through the KRA, and the update propagates across intermediaries. A mismatch caught before an application saves the rejection later, which is why checking costs nothing but the five minutes.

Central KYC, the wider record

Since 2016, financial institutions also record a Central KYC (CKYC) entry identified by a 14-digit number, shared across banks, insurers, mutual funds and brokers. The securities KYC and CKYC are separate records that reference each other. One KYC exercise satisfies the securities market’s requirement; the CKYC number is what other financial sectors look up. Neither expires, but both require updating when your documents change.

A concrete example

You start an account opening on your phone. DigiLocker fetches PAN and Aadhaar, you photograph your signature, then a video call confirms your identity against the documents. About 15 minutes after starting, the application is submitted for verification.

Questions people ask about KYC (Know Your Customer)

Yes. KYC done once with a SEBI-registered intermediary is recorded with the KRA and reused by others. You can check your KYC status online before applying anywhere.

Name mismatches between PAN and Aadhaar, an outdated photograph, or a mobile number not linked to Aadhaar. Fix the mismatch before the call, because the call agent can only flag it, not repair it.

No expiry date exists, but records must be updated when your documents change, and regulators periodically require re-verification of old records. An unchanged KYC stays valid; a stale address or unlinked mobile breaks future verifications.

No. The account activates only after KYC verification completes. The broker accepts the application first and runs verification after, which is why the video call and document checks happen in the day or two after you submit, and why the account is “usually active the same day”, not always.

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