At Dhan, as a regulated stockbroking entity, whenever you open an account with us, we ensure that your account is verified and validated by all intermediaries, such as Exchanges, Depository and KRA (KYC Registration Agency).
To help investors understand the significance of the risk management framework established by KRA, SEBI has published a detailed FAQ on their website. You can read the entire document here. A few important excerpts from this document are highlighted below:
In the same document, Q43 reads as:
“How can a client find the status of his KYC and what are its implications?”
While SEBI has requested clients to go to KRA website to find the status, at Dhan, we have made this simpler for all our users. The steps are as follows:
- Go to your Profile Section on Dhan app and click on “Profile & Account Details”. On Dhan Web, click on your photo at the top right corner and then click on “My Profile on Dhan”.
- Scroll down to the bottom and you will see an option to find “Your KYC status in KRA”
- Click on “Check”.
- At this point, we will connect to KRA and fetch your KYC status in real-time.
Your KYC status could be one of the following:
- Validated
- Verified
- On Hold/Rejected
Let us understand what each of these mean:
Validated: In this case, as explained above, you can continue to trade and invest in securities seamlessly (this includes stocks, ETF and mutual funds). Additionally, your KYC details are portable across intermediaries. There is no action required from your end.
Verified: In this case, you can continue to trade and invest with the existing intermediary. For stocks and ETF, you can continue to transact on Dhan. However, you need to do a re-KYC if you wish to transact with another intermediary. Please note that you may not be able to transact in Mutual Funds.
On Hold/Rejected: In this case, you will not be able to trade or invest in the securities market, either with Dhan or any other intermediary.
As per Exchanges, clients who’s KYC status is on Hold or Rejected shall neither be Permitted to Trade on the Exchange, nor will they be allowed to square up their open positions, until they comply with the validation requirements. Eventually, such open positions will naturally expire on the expiry date of the respective contract. The deadline for this activity will be communicated by us from time to time, on your registered email ID.
Here’s a helpful chart to understand under what conditions KRA(s) usually assign these statuses to clients:
How can I become KYC validated?
Dhan has always been at the forefront of helping our users through all regulatory changes. Last year, we launched KYC Control Centre via which you can easily modify your KYC details and become validated. If your KYC status is Registered or on Hold/Rejected, simply log on to our KYC Control Centre using your existing Dhan credentials and follow the on-screen steps.
Note: If your PAN is not linked to your Aadhaar, your KYC status will not change to “Validated” even if you modify your KYC details.
Feel free to reach out at help@dhan.co in case you need assistance. For any feedback, please reach out to us at feedback@dhan.co
-Anirudha
Product @ Dhan