Online transactions are convenient but is it possible to start investing purely online, without having to go to any office?
21-Oct-2014 •Research Desk
I am a new investor. I want to start investing in an SIP. Is it possible to pay the first installment online or do I have to visit the centre?
- Dinesh Choudhary
The key to whether you can start off purely through online interaction is whether you have a valid KYC (Know Your Customer). Even if you think you do, you will have to check whether it's valid.
In general, the Government of India likes to make various aspects of people's lives more difficult. KYC, as part of this effort, is the scheme to make investing more difficult. As far as one can figure out, it appears to be run on some random basis under which investor's KYC status is frequently invalidated.
If you are a first time customer who is investing directly (without going through a distributor), it is likely that you will have to physically go to the Investor Service Center or the AMC's office to show your original documents. If you are going through a distributor, notarised photocopies should be enough.
As of now (October 2014), the following documents are required: