• KYC appearing in the KRA system but not registered

I have been trading and investing in stock market in both equities and FnO segment through a depository participant for the last 2 years. I wanted to open another demat account with a different intermediary online but could not do so. I noticed that though my KYC is appearing in CVLKRA system but the same is not registered and the status is showing as ON HOLD (" PAN Copy Not Submitted") in the website of CDSL Ventures Ltd (CVL-KRA). While opening the account with my broker in 2015 I had submitted all the necessary documents required for KYC. I have also submitted my IT return for 2015-16 and have shown short term capital loss on account of share trading. How is this possible that inspite of me trading in share market for last 2 years but my KYC is not registered yet. Is this mandatory? Who is responsible for KYC registration? What may be the legal implication of this? What may be the reason for which my broker has not registered my KYC? What about all the transactions I have done for the last 2 years? Is this a case of negligence on their part or they may have done this intentionally to evade taxes ( STT and others) I have paid to them? Should I lodge a legal complaint? Please let me know the procedure in case that is required.
Asked 7 years ago in Business Law

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4 Answers

The entry of PAN details might have been erroneously omitted at that time by mistake by the data entry operator.

You can give a photo copy of the same and get it registered and clear the issue if it is within your knowledge.

Confirm the status and also verify if there was som mal practice in the transactions pertaining to your trading activities or with your demat account.

If this omission was by oversight, you may ignore it.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

1)KYC is mandatory

2) broker is responsible to register your KYC after you have submitted all the documents required for registration

3) you can seek clarification from the broker as to why your KYC has not been registered inspite of furnishing your PAN card copy

4)if your KYC had not been regsitered you would not have been allowed to trade for last 2 years

5) it does appear that there is some problem in CDSL Ventures LTd site .

6) broker must not have done it intentionally

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1.In tbe new Demat a/c you can submit the KYC once again.

2.You can meet its officials in person to know the actual reasons.May be the data was not updated leading to this subsequent anomalies.

3.There is not much legal implications. Submit the KYC now.Nothing will happen if you file your ITR honestly.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1. It is the duty of the broker to register your KYC once you have furnished to him all the documents. Unless the KYC was registered you could not have performed any transaction in the past 2 years.

2. Submit a fresh KYC registration form now. It does not seem to have been done intentionally by the broker.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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