Mandatory in-person verification part of KYC process
The Securities and Exchange Board of India (Sebi) in 2005 mandated that all asset management companies and intermediaries must comply with the know-your-customer (KYC) guidelines to adhere to the requirements of the Prevention of Money Laundering Act, 2002. In-person verification (IPV), mandated by Sebi in 2011, is a part of the KYC process used to establish the identity of the person.
IPV is the physical verification of the information provided in the KYC form done by the AMC or broker’s employee to establish its authenticity. However, to speed up the process, most companies now use video KYC. Video KYC requires an investor to upload identity proofs such as photograph, address proof, a cancelled cheque, PAN card and signatures on the AMC’s platform. You are then required to start real-time video recording using the front camera of your smartphone and display the hard copy for 10 seconds each.
The IPV process was traditionally done by an employee visiting you but now it is mostly done via a video interaction. But if a video KYC is not available, you will be required to physically submit the documents. Note that only the AMC, KYC registration agency such as Karvy or CAMS, mutual fund distributor and transfer agents are authorized to carry out an IPV.
Source : Live Mint