KYC

Know Your Customer is the process regulated financial institutions use to verify who you are before you invest or open an account. For investments it typically involves your PAN, proof of address, a photograph and, in many cases, an in-person or video verification. Once completed, your KYC record is held centrally and can be used across intermediaries.

Why it matters

KYC is a legal requirement under anti-money-laundering rules. Without valid KYC you cannot invest in mutual funds or open a demat account, and many other financial products require it too. Keeping it current avoids transactions being held up later.

How to read it

• KYC status. Since April 2024, a securities-market KYC record shows as validated, registered or on hold. “On hold” usually means a detail — such as your mobile number, email or address proof — needs updating or verification, and transactions may be blocked until it is fixed.
• Central records. For securities markets, KYC records are kept by KYC Registration Agencies (KRAs). The Central KYC Records Registry (CKYC) holds a common record across financial sectors.
• Updates. Changes to your address, contact details or name are made through a regulated intermediary.

Common misconceptions

• “I need a fresh KYC for every fund house.” Once your KYC is registered and validated, other mutual funds can generally rely on it.
• “KYC is done once, forever.” Records can need re-verification when details change or rules tighten.

Privacy note: Share identity documents only through the official, secure channels of regulated entities. CompoundX never asks for OTPs or passwords in chat or enquiry forms; identity verification for investing is completed with our regulated partner during onboarding.