Same here – have two stocks that I need to sell. I have been writing to Zerodha about it.
This has been badly managed by them as no process allows for immediate blocking without warnings. I never received alerts or emails from Zerodha that there is some issue with kyc. One fine day, my account was blocked.
I have changed my email address 2 years ago. I didn’t received any email from zerodha to validate it before deadline.
Suddenly my trading account got blocked and I received email from zerodha to validate mobile number and email address.
I have validate it on Thursday. Now I have to wait for 5 days. Does Saturday and Sunday count in this 5 days ? or I have to wait for 5 working days ?
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@Alwin Just got an email:
Your request to update KYC for your account with Zerodha has been approved.
You can continue using the account in 24 hours.
Does this mean i can trade from tomorrow?
If you are opening an account with any intermediary, your KYC is supposed to be registered with KRA. KYC registration agency are a third party here. However, whether your KYC is registered or not will be known once KRA alerts the respective intermediary. The SEBI regulations are for KRA to ensure your details are validated. If you have multiple accounts, this should technically affect all accounts.
Most of the KRAs must have sent multiple reminders instructing clients to validate your KYC. In any case, Zerodha alerted you as soon as KRAs notified your IDs, mentioning the same. Without receiving such affected IDs from KRAs, it’s almost impossible to notify in prior.
Imagine Zerodha doesn’t block- Clients can end up having an open position while regulations don’t allow them to trade. In addition to that, Zerodha will be held accountable by regulators. I cannot comment on other intermediaries. At Zerodha, We follow strict KYC norms.
One of the previous KYC circulars by exchanges said UCCs/clients will not be allowed to even exit positions until KYC status is verified. Now imagine having open positions and not being able to exit. Quite a risk, right? So, in the best interest of clients and compliance/risk management policies, it’s ideal to get clients to validate and then allow them to trade. Hence, we request you to cooperate.
Could have been communicated well in advance?
Well, I agree its a last-minute notification. But trust me, If there was a possibility to do this, we would have definitely done well in advance. At last, why would Zerodha doesnt want its client’s KYC to be compliant or leave the client in a situation they cannot trade?
This means your rekyc request at Zerodha is approved. Zerodha and KYC agency are 2 different entities. Since your Rekyc is approved, the details are sent to KRA for modification which will take up to 2-3 days.
Explained here.