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Who are Clients of Special Category (CSC), and when must they provide income proof?

As per the SEBI circular (WEB), Clients of Special Category (CSC) are required to provide income proof while opening an account or doing Re-KYC as part of enhanced due diligence. CSC includes the following categories of clients:

  • Non-resident Indian clients.
  • High net worth clients.
  • Trusts, charities, Non-Government Organisations (NGOs), and organisations receiving donations.
  • Companies having close family shareholdings or beneficial ownership.
  • Politically Exposed Persons (PEP).
  • Clients who are publicly known to have questionable reputations.

Acceptable income proof documents

You can submit any of the following as income proof:

  • A bank statement with the bank logo and seal in the name of the Zerodha account holder for the last 6 months with an average balance of more than ₹10,000.
  • Latest salary slip with gross monthly income exceeding ₹15,000.
  • Latest ITR acknowledgement with gross annual income exceeding ₹1,20,000.
  • Latest Form 16 with gross annual income exceeding ₹1,20,000.
  • Certificate of net worth of more than ₹10,00,000.
  • Latest statement of demat holdings with current holdings value exceeding ₹10,000. (Your holdings must not be pledged)
  • Latest Fixed Deposit (FD) receipt with a deposit amount exceeding ₹1,00,000.

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