Broking and Investment platforms are looking at new digital KYC (know-your-customer) guidelines from market regulator, Securities, and Exchange Board of India (Sebi), as an opportunity to widen investments all over the country.
But issues like lack of popularity of Digilocker, mobile numbers not updated with the Aadhar database, and lack of awareness around video-based verification are some of the problems they are facing while welcoming new users for the investment platforms.
Zerodha which is a Bengaluru-based trading platform charge 200 while onboarding to the platform for trading. Nithin Kamath, Chief Executive of Zerodha, said while drop-offs still happen, the charge ensures only serious investors join the platform. “Those who pay for onboarding will be ready to go through the strict documentation process and complete all formalities,” he said.
The digital KYC process laid out by Sebi has made Aadhaar-based authentication the cornerstone of the onboarding process. While some of the insiders from the industry pointed out that these guidelines have helped, drop-offs while onboarding still continues. Platforms are taking their own measures to ensure it gets minimized.