Source: business standard.com
Today other regulators too have made KYC mandatory. The Securities and Exchange Board of India (Sebi) has mandated it for mutual funds and broking accounts, the Insurance Regulatory Development Authority (IRDA) while buying insurance and the Forwards Markets Commission (FMC) for commodity trading. You need to submit it even for making post office deposits.
Impact: Although the effort towards strengthening identification norms has helped in preventing money laundering and reducing fraud, it has had a negative impact in an unexpected quarter. The growth in investor numbers in various instruments is either stagnating or reducing. Apparently, the KYC norms are proving restrictive because of the hassles of documentation. The KYC requirement sometimes leads to unnecessary and repetitive work, delaying operations. Customers complain about the paperwork involved. Ultimately, it means customers have to run from pillar to post for complying with the KYC norms. Investors complain of being asked to provide details repeatedly or face a freeze on their accounts.
| IN BRIEF |
| * KYC is mandated by most regulatory authorities |
| * Documents for proof of identity and address are needed. |
| * Certain investments may need PAN card details |
| * Duplication of documents in some cases is possible |
| * Investee firms may also incur compliance cost |
.....png)
No comments:
Post a Comment