Understanding the Latest changes for Verification of Non-Aadhaar / Deemed OVD Records

March 28, 2023

In a recent development in the financial landscape, the Central Depository Services Limited (CDSL) issued Circular Ref. No. CVL/OPS/INTERM/GENRL/24-193 dated March 28, 2024, pertaining to the verification of Non-Aadhaar / Deemed OVD Records. This circular introduces important guidelines for investors and intermediaries regarding Know Your Customer (KYC) compliance and verification processes.

Key Highlights:

1. KYC Status for Existing Investors: If an existing investor has completed the verification of their mobile number and email ID and has provided any other Officially Valid Document (OVD) apart from Aadhaar, their KYC status will remain verified and not be put on hold with the existing intermediary.

2. Non-OVD Documents: However, for investors who have completed their KYC using non-OVD documents, they will need to undergo a new KYC process if they intend to open an account with a new intermediary.

3. Older KYC Cases: For older KYC cases (i.e., Non-Aadhaar-based KYC records lodged up to August 2023), where the KYC record meets the PAN - Aadhaar seeding validation (where applicable and already implemented w.e.f. July 01, 2023), and Email / Mobile are validated by the KYC Registration Agency (KRA), and the KYC record is in verified (KYC Registered) status with KRA, such investors will be allowed to continue transacting in the securities market with their existing intermediary.