uTrade AlgosYes, Authorised Persons (APs) are permitted to conduct in-person verification (IPV) of clients. This is an important part of the Know Your Customer (KYC) process. Here’s a more detailed explanation:
In-Person Verification (IPV) and Authorised Persons:
KYC Compliance:
- The Securities and Exchange Board of India (SEBI) mandates KYC compliance for all participants in the securities market. This is to prevent money laundering, fraud, and other illicit activities.
- IPV is a crucial component of KYC, ensuring the authenticity of client identities and documents.
Role of Authorised Persons:
- APs, as intermediaries, are often involved in the client onboarding process. This includes conducting IPV.
- They are in a position to physically verify the client’s identity and the documents provided.
- This helps to add a layer of security to the client on boarding process.
Importance of IPV:
- IPV helps to mitigate the risk of identity theft and fraudulent account openings.
- It ensures that the information provided by the client is accurate and verifiable.
- With the rise of online trading, IPV is a key part of making sure that online clients are who they say they are.
SEBI Regulations:
- SEBI has established guidelines for IPV, which intermediaries, including APs, must follow.
- With the growth of technology, SEBI has also allowed for digital IPV through video verification, but in-person verification is still a valid and used method.
Key Considerations:
- APs must adhere to strict protocols when conducting IPV to ensure compliance with regulations.
- Accurate record-keeping is essential.
In essence, the ability of APs to conduct IPV contributes to a more secure and transparent securities market.
If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.