What details are collected when opening an account with Zerodha, and why are they collected?
- Mobile number and email ID: Mobile and email are verified through One Time Password (OTP). This information helps convey important information from Zerodha, the exchanges, depositories, etc. Clients can update their contact details if needed. To learn how, see How to change the registered mobile number or email address with Zerodha online?
- Permanent Account Number (PAN): PAN is the sole identification number for all transactions in the securities market. Collection of PAN is mandated by SEBI as it is a unique identifier and verifies information such as identity, eligibility for trading and demat accounts, and compliance with Know Your Customer (KYC) norms across exchanges and depositories.
- Address: Addresses of clients whose Know Your Client (KYC) is registered with the KYC Registration Agency (KRA) are fetched from the KRA. Addresses of clients who are not KYC registered with the KRA or want to update their address must complete the process through Aadhaar using Digilocker, a digital platform provided by the Indian Ministry of Electronics and Information Technology. The address is extracted, and an XML copy of the Aadhaar with the address is saved with Zerodha. The Aadhaar number is not copied or saved anywhere else.
- Bank account details: Bank details such as the client’s account number, Indian Financial System Code (IFSC), and Magnetic Ink Character Recognition (MICR) code are collected to ensure secure fund transfers. Zerodha’s verification process ensures that the bank account belongs to the client and is linked to their Zerodha account. These details are also shared with depositories to ensure payouts for corporate actions like dividends are accurately credited.
- Background Information: Background information, such as name, date of birth, photograph, address, educational qualifications, occupation, residential status, trading experience, income details, marital status, and declaration of political exposure status, must be collected for regulatory compliance and risk assessment.
- Nominee Details (Optional): If a client chooses to add a nominee, the name, mobile number, email address, and identity proof of the nominee are collected. This data ensures that the authorised nominee can be verified and perform specific actions during claims and settlements.
- Income proof: An income proof is required to ascertain the financial capability of clients who want to trade in derivatives. It is a protective measure to prevent excessive risk-taking. Additional documentation may be collected as per the PMLA guidelines to ensure the legitimacy of the transactions for transactions exceeding specified thresholds.
- Signature proof: The physical signatures serve as an authentication measure when cross-referenced with the submitted application forms. This process guarantees that any request form can be verified against the client’s signature as and when required.
- Video In-Person Verification (IPV): A short video is recorded with a time stamp, IP address and location to verify the person signing up with Zerodha is the same person opening an account. To learn more, see What is In-Person Verification (IPV), and why is it required?
Clients who have any grievances regarding data protection can follow the stages of the grievance redressal mechanism:
1st stage: A complaint can be raised by creating a ticket. To learn how, see How to create a ticket or raise a complaint at Zerodha?
2nd stage: A complaint to the Data Protection Board. The process for filing a complaint will be communicated to the clients once Zerodha is notified of the same.
3rd stage: Appeal before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).