Karvy KRA, KYC, FATCA Status: All you need to know



  • Introduction To KRA
    KRA is an abbreviated short form of KYC Registration Agency whose primary job is to collect and maintain KYC records of individuals on behalf of SEBI registered financial market participants mainly Mutual Funds companies, NBFC, Brokers etc. A KRA is registered under the Securities and Exchange Board of India (KRA) Regulations, 2011. KRA helps to provide a centralized structure to various market participants to access the investor's data without going through the documentation process every time before any investment process.

    Registration with KRA is a one time process for investor dealing in the securities market. It helps in undertaking financial transactions without any further KYC compliance. At present, there are five KRA operating in India namely Karvy KRA, CAMS KRA, NSE KRA, CVL, NDML. Registering with any of the five KRA will help to complete the KYC process as data are stored and shared in a centralized database.

    In this post, we will discuss the KYC registration process with KARVY KRA and FATCA declaration status.

    KARVY KRA
    Karvy is known for its prowess in financial market and services. It was setup in 1982 in Hyderabad, by five young professionals to tap the largely unregulated financial market which was based in Mumbai. Firstly it started with Registry business, then followed the stock broking business. Since then, Karvy has developed itself an integral part of the Indian financial system.

    The KRA services have been launched by its subsidiary Karvy Data Management Services (KDMS) in April 2008. KDMS is a leading provider of business and knowledge solution to its client in financial space. It has ISO 9001:2008 compliant service delivery mechanism and proprietary IT backbone.

    One can check his/her KYC status by logging into the Karvy KRA website.

    Karvy KYC Process
    Karvy provides KYC services to both individual and non-individual entities. Individual investors looking forward to completing the KYC process through Karvy KRA are required to file the KYC Application form available in the Karvy Website and get it submitted to any Karvy branch or to your SEBI or AMFI registered financial advisor.

    Supporting Documents required while submitting the filled in KYC form
    Recent passport size colour photo
    Self-attested copy of PAN Card
    Proof of Identity
    Proof of Address
    *All documents need to self-attested

    The Karvy KYC Application form is very easy to understand and to be filled. The details required in all the part (A & B) of the application form are basic and can easily be filled by the applicant.

    Important points to remember while submitting the KYC form

    • Non-resident individuals or foreign nationals are required to submit a copy of passport/ OCI card/ PIO card and foreign residential address proof
    • For opening an account of a minor with Depository participant or for investment in mutual fund, copy of birth certificate/Mark sheet or school leaving certificate is required
    • Politically Exposed Persons (PEP) should declare all the information along with the KYC documents.

    Karvy e-KYC Process
    Karvy also provides the e-KYC services to its customers through Aadhaar verification. The services are provided through Expres 2.0 platform for fast and easy completion of the KYC process. e-KYC with Karvy requires upload of scanned documents and In Person Verification (IPV) over a video call to complete the process.

    Step involved in the e-KYC process:

    • Log in to e-KYC portal of Karvy
    • Fill in your name, PAN, DOB, email and phone number in the given column
    • Karvy will verify the PAN card in the c-KYC database
    • Provide the Aadhaar number and submit the scanned images ( colour passport photo and personalised cheque) of the documents
    • Your details will be verified from the UIDAI database and the details will be populated in the screen
    • Schedule an In Person Verification (IPV) over a video call with a Karvy representative
    • Digitally sign the documents by the entering the OTP sent to your mobile and email
    • After successful verification, the e-KYC account gets activated for initiating financial transaction in mutual funds

    Karvy FATCA-CRS Declaration
    The Foreign Account Tax Compliance Act (FATCA) or Common Reporting Standard (CRS) is a declaration prepared by financial institutions for every investor investing in capital markets and Banking schemes to comply with the regulations of CBDT. The FATCA has been made mandatory for every retail investor from 31st August 2015.

    The FATCA declaration enables the government to share information with its allies which includes the USA, G-20 countries and OECD for achieving greater tax compliance among nations and prevent the system from being used for money laundering.

    Process to file Karvy FATCA form
    An investor can download from FATCA form (Individual & HUF category) from the Karvy website and the filled in form should be submitted along with investment application form with supporting documents. An investor needs to submit the FATCA application form every time he/she chooses to invest with different AMC or broker. Non-compliance to FATCA-CRS declaration may lead to freezing of accounts with no right to the transaction until the process is completed.

    In the FATCA application form, an investor needs to correctly provide the information regarding his/her income details, net worth, PAN details, occupation details, Tax residency and whether belongs to a Politically Exposed Person (PEP) or not. If the investor's tax residency status is different from India, then he/she has to provide all the details of tax residency status of other countries.

    The process is mandatory for all Indian investors including NRIs. The form is to be submitted to the nearest Karvy Computershare branch for further verification and processing the details provided.



  • Hi, Karvy has an updated registration process which is completely online and no hard copies of the documents are required.

    They leverage Aadhaar Digital Signature to open an online account. They just need scanned copy of the bank cheque leaf to create the account.


 

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