KYC (Know Your Customer) update is mandatory for investors in India. Many share-related services such as Demat conversion, share transfer, transmission after death, dividend credit, and selling shares get rejected or delayed due to incomplete or outdated KYC.
Why Is KYC Update Mandatory?
An updated KYC is required for:
- • Physical to Demat conversion
- • Transfer or transmission of shares
- • Credit of dividends and bonuses
- • Claiming unclaimed shares / IEPF
- • Trading or selling shares
- • Change in personal details
When Do You Need to Update KYC?
You should update your KYC if:
- • PAN or Aadhaar details have changed
- • Address or mobile number is updated
- • Bank account details are changed
- • Signature has changed over time
- • You are converting physical shares to Demat
- • You are a legal heir or NRI claimant
KYC Update for Physical Shareholders
Investors holding physical share certificates must complete KYC with the company or its RTA before:
- • Transfer of shares
- • Transmission after death
- • Duplicate share certificate issuance
- • Dematerialization
Incomplete KYC is one of the most common reasons for rejection.
KYC Update for Demat Account Holders
For Demat holders, KYC is updated through the Depository Participant (DP).This includes:
- • PAN & Aadhaar linking
- • Bank verification
- • Signature update
- • Contact detail updates
KYC Update for NRIs and Legal Heirs
NRI and inheritance cases require additional care due to:
- • Overseas address proof
- • Attestation requirements
- • Compliance with FEMA rules