Reference Compliance Requirement Remarks

Operating The passport size photograph of each

Instruction applicant should be pasted on the account
2.4.6 opening form. The BO should sign across
the photograph and on the account
opening form.
Operating Photocopies of documents submitted by a
Instruction BO should be obtained and maintained on
2.4.13 regular paper and not on thermal paper.
Operating The DP shall take special care to check
Instruction the genuineness of the client, if
2.4.12 disproportionately large number of
accounts (say more than 20) are opened
with the same name and / or same
address and / or with the same bank
account details / PAN card details.
Operating BO accounts to hold securities cannot be
Instruction 2.4.5 opened in the name of proprietary concern
/ partnership firms. Such accounts should
be opened in the individual names of
proprietor / partner(s).
PAN card details are to be obtained for
proprietor / partner(s) as well as for the
proprietary / partnership firm. For
Partnership firm, Partnership deed is also
to be obtained. The pan card details of the
partnership firm / proprietorship firm is to
be updated in the CDSL system.
Operating For opening a beneficial owner account.
Instruction 2.4.2 A BO wishing to open an account
& 2.4.8 should approach a DP.
The staff of the DPs must personally
verify the identity and address while
opening the BO account and the record
of the person who carried out such
verification should be maintained.
Operating The DP must verify the copies of the
Instruction documents with original before
2.4.15 accepting the same as valid.
An authorized official of the DP, shall
put the ‘verified with the original’ stamp
on the copy after verification with the

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 Reference Compliance Requirement Remarks
original documents and sign the same.

Reference Compliance Requirement Remarks

Operating “IN-PERSON” verification (IPV) of
Instruction applicants at the time of opening demat
2.4.8.1 accounts of non body corporates
The authorized official of the DP
should personally verify the
photograph(s) affixed in the account
opening form and proof of identity
document(s) with the person
concerned, before opening demat
accounts of non-body corporates
After due verification, the DP should
affix a stamp on the document(s)
collected as proof of identity to the
effect that the identity of the
applicant(s) is verified “in person” and
the copy of the valid proof of identity
documents have been “verified with
original”.
The authorized official of the DP who
has done in-person verification and
verified the documents with original
should sign under the DP stamp.
DPs may stamp or print the "in-person"
verification details on any page of the
account opening form so that the other
details mentioned in the AOF are not
made illegible. The staff of the DP who
has done "in-person" verification
should sign under the DP stamp.
Attachment of a separate sheet or a
sticker to the Account Opening Form
having done "in-person" verification will
not be allowed.
“Web-camera” may be used to carry
out “in-person” verification at the time
of opening of BO accounts, subject to
compliance with other SEBI
guidelines/circulars and CDSL’s DP

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 Reference Compliance Requirement Remarks
Operating Instructions, relating to
opening of non-corporate BO accounts
including verification of documents.
Operating DPs should note that “in-person”
Instruction verification done for opening beneficial
2.4.8.1 owner’s account by a Depository
Participant (DP) will hold good for opening
trading account by a stock broker and vice
versa, if the stock broker and DP is the
same entity or if one of them is the
holding or subsidiary company of the
other.
In case the IPV is carried out by the
stockbroker entity who is the holding
company or subsidiary of the DP, a
declaration on the letterhead of the
stockbroker entity, dated, stamped and
signed by the staff of such entity should
be obtained.
The DP shall keep the declaration of in-
person verification carried out on record
along with the given BO’s demat account
opening form and other KYC documents.

In case a stock broker is also a depository

participant, he can use the same KYC form
(as specified in the said circular as annexure -
2) for basic details and take additional
information pertaining to demat account.
Pan Card Details
Operating Obtaining Pan Card details of all the
Instruction 2.3 holders is compulsory for all categories of
demat account holder(s). The DP official
accepting the account opening form shall
verify the photocopy of the PAN Card
against the original, sign and stamp the
copy and write: “PAN VERIFIED” on the
copy. Details of PAN card submitted by an
applicant should be verified with the name
and other details appearing on the website
of Income-Tax Department i.e
http://incometaxindiaefiling.gov.in/challan/e

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 Reference Compliance Requirement Remarks
Operating nterpanforchallan.jsp
Instruction 2.4.9 (IT Department has changed the link for
verification which was earlier:
http://incometaxindiaefiling.gov.in/portal/knowp
an.do )
Photocopies of PAN Cards so obtained
should be kept on record along with other
Operating documents pertaining to the accounts.
Instruction In case the names do not match or the
2.4.10 PAN card details are not present in the
PAN card database, DP should seek
clarifications from the applicant and The DP should
activate the account only when the ensure that
Operating discrepancy is resolved.
Instruction 2.3 proper
Certain categories of BOs viz Custodian, documentation
Governor, Commodity accounts, President supporting
SEBI circular of India, Sikkim Resident, UN entities/ exemption is
20/2008 dated Multilateral Agencies, Deceased Holder kept on record
June 30, 2008 are exempted from obtaining PAN card
details. Further, Central Government, State
Government, and the officials appointed by
the courts e.g. Official Liquidator, Court
receiver etc. (under the category of
Government) are exempted from the
mandatory requirement of PAN for
transacting in the securities market,
subject to the DPs verifying the veracity of
the claim of the specified organizations, by
collecting sufficient documentary evidence
in support of their claim for such an
exemption.
Comm. 2766
The Date of Birth (DOB) / Date of The DOB of
dated
Incorporation (DOI) are to be obtained minor can also
December 16,
from the PAN card, as submitted by the be obtained
2011.
entity and the same should be taken on from School
record for the sole/ first holder of the demat Leaving
account. The DOB / DOI that appears on Certificate /
the PAN card should be entered in the Mark sheet
system. In the case of “minor”, the DOB issued by
should be obtained from the Birth Higher
Certificate and entered in the system. Secondary
Board /
Passport of

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 Reference Compliance Requirement Remarks
minor’
Operating In case of BOs having different sub-status
Instruction for different ISINs, the DP must ensure that
2.4.18 a separate BO account is opened for each
BO sub-status.
Operating The DP shall scan the signature (s) of the In case of
Instruction BO(s), authorized signatory(ies) and authorized
2.4.19 Power of Attorney holder(s), if any, at the signatories and
time of account opening or immediately POA holders,
thereafter. the mode of
operations
should also be
recorded in
CDAS.
Operating DPs should collect proof of bank details.
Instruction Any one of the following documents may
2.4.25 be collected :-
(i) Photocopy of the cancelled cheque
having the name of the account holder
where the cheque book is issued.
(ii) Photocopy of the Bank Statement having
name and address of the BO and not
more than 4 months old.
(iii) Photocopy of the Passbook having name
and address of the BO.
(iv) Letter from the Bank.

In case of option (ii), (iii) and (iv) above

MICR code of the branch should be
present/mentioned on the document and it
should be self certified by the BO.

Comm. 2481 In case of Bank DPs, where a BO is having

dated June 02, banking relation with the Bank and has
2011 also provided the same Bank details for
the demat account, then the Bank DP need
not obtain proof of such bank details as
mentioned above.
Comm. 1931 DPs should note that bank account details
dated March of PMS should not be captured in place of
22, 2010 bank account details of clients in
depository system, in case of PMS

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