If you don't want to utilize Aadhaar and merely want to use your PAN, you may start the procedure online, but you'll have to provide physical papers afterwards. SEBI, the capital markets regulator, has approved the e-KYC demat account method initiated by UIDAI last year. Some financial companies have already begun to adopt eKYC demat accounts. Brokerages are following suit as well. Motilal Oswal Securities Ltd implemented paperless e-KYC, as well as quick trading and demat account opening, from January 18, 2016. This is how it goes.
To begin, you must have a current Aadhaar number. Go to the brokerage website and then to the online application section. You'll be led to a screen that asks for a valid PAN and Aadhaar after entering your basic information like name and phone number. For KYC purposes, the information associated with your Aadhaar will be connected to your account.
The technique necessitates the use of a one-time password. You will get an OTP on the mobile phone number and email address linked with Aadhaar after you have input your Aadhaar number and approved the data being used. After that, you must choose a scheme or a brokerage package and provide the information for the bank account you want to link to the account.
The in-person verification procedure is the following stage. Using a camera, this is done online. Your identity and documentation will be checked. After that, the margin money required to activate the account must be sent. Because this is an online procedure, an e-signature is necessary for this stage. An OTP will be provided once again to confirm your agreement to use the e-sign, which is stored in the UIDAI database. The e-sign will be appended to relevant forms when the OTP verification is completed.
Following these processes, your trading account and connected demat account will become operational, allowing you to instantly begin trading in equities markets and mutual funds. After this procedure is done, you do not need to transmit any physical papers. If you don't want to utilize Aadhaar and merely want to use your PAN, you may start the procedure online, but you'll have to provide physical papers afterwards.
- What is the mechanism behind it?
The SEBI has approved Aadhaar-based e-KYC. This implies that the Aadhaar data may be used to get all of the information required for KYC. Motilal Oswal Securities keeps an online record of the information it gets from clients, both directly and through the Aadhaar system. An OTP verification is performed every time the e-sign is used.
If you wish to change your mobile phone number or email account, you may do so with the assistance of a customer support representative. A tangible document is required for address changes. Opening an online demat account is now free, however there will be recurring trading and demat maintenance and transaction costs after that.
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