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agement Studies.
SMC Global securities Ltd. is a leading and award winning stock broker in India having a good
track record in the financial services industry. Established in 1990, SMC is a well-diversified fi-
nancial services company in India offering services across brokerage (across the asset classes of
equities (cash and derivatives), commodities and currency), investment banking, wealth man-
agement, distribution of third party financial products, research, financing, depository services,
insurance broking (Life & non- Life), clearing services, mortgage advisory , alternate investment
fund (AIF) and real estate advisory services to corporate, institutional, high net worth individuals
and other retail clients. SMC has workforce of 3000+ employees and presence in 500+ cities
with 98 branches & around 2400+ sub-brokers with overseas offices in Dubai, New York, Atlan-
ta & Orlando. SMC has over 13,000+ independent distributors for third party product distribu-
tion with total customer base of 16 lakh + across India. SMC is a leading online stock broker and
is having a tie-up with Punjab National Bank for providing share trading facility to its clients.
Key Persons:-
1. Mr. S C Aggarwal
Chairman & Managing Director, SMC Group
1. Broking
Equities and Derivatives
Currency
Commodities
Depository
Institutional Broking
Clearing Services
NRI
FPI
DIFFERENT DEPARTMENTS
1. Real Estate
2. Marketing
3. Client Registration Forms
4. DP
5. Trading
6. Risk Management
7. HR
8. Administrators
9. IT
10. Arbitragers
11. Wealth Management
Know your customer (KYC) is the due diligence and bank regulation that financial in-
stitutions and other regulated companies must perform to identify their clients and ascertain
relevant information pertinent to doing financial business with them. Know your customer
policies have becoming increasingly important globally to prevent identity theft fraud, money
laundering and terrorist financing. In a simple form these rules may equate to answering
twelve questions, but this is the tip of the iceberg and regulators now expect much more.
KYC should not be thought of as a form to be filled - it is a process to be undergone from the
start of a customer relationship to the end. One aspect of KYC checking is to verify that the
customer is not on any list of known fraudsters, terrorists or money launderers, such as the
Office of Foreign Assets Control's Specially Designated Nationals list. Beyond name match-
ing, a key aspect of KYC controls is to monitor transactions of a customer against their rec-
Know Your Customer processes are also employed by regular companies of all sizes, for the
ance. Banks, insurers and export credit agencies are increasingly demanding that customers
provide detailed anti-corruption due diligence information, to verify their probity and integri-
ty.
With effect from 1st Feb 2008, KYC is mandatory. Till the time, one gets the KYC reference
number; one cannot invest 50k or more in the Indian mutual funds.
Account Opening Process- Client Registration Forms.
Types of Accounts.
Individual Account.
Partnership.
Corporates.
Types of Segments.
1. Equity-
Cash.
Currency.
2. Demat.
3. PNB Forms.
Proof of address
Bank Proof
Income proof of six months (in case of F&O and Currency Segment activation)
IN PERSON VERIFICATION Stamp on all supported documents.
Equity scheme: Rs 500 for the first year + Account maintenance charges of Rs. 350+GST
AMC lifetime Equity: Rs. 999 (condition: minimum one trading in a quarter or else charges of
Rs 75+GST applied)
Margin Scheme: Rs. 50000, Odin diet activation is free for the first year. Account opening
charges will be reversed once the client generates twice the amount of the account opening
charges in the duration of three months. AMC charges (350+GST) will be levied.
Refundable deposit security: Account opening charges is of Rs. 3000. Reversible during the time
of account closure.
Processes:
Receiving forms: forms are received either through couriers or in hand from Sub brokers and
franchise and is entered in the system with a mention of proper date, form number and series.
Checking: Received forms are checked as per the requirement criteria. Those which fail to meet
the requirements are marked as rejected forms and are sent for solving, the rest correct forms are
Call Verification: It is mandatory to verify whether the details which are provided by the client
are correct and is not forged. The call is recorded by time, date and the person attending it. If the
verification is failed, the reason behind it is entered in the system with the help of management
information system.
Punching: The Missing and the other details such as bank details, phone number, email address,
System verification and code generation: It is important for the details to be checked twice as a
properly punched data before the code generation. Code generated only for the new forms.
Franking: It is the physical application and presence of postage stamps, or any other markings
recognized and accepted by the postal system or systems providing service, which indicate the
payment of sufficient fees for the class of service which the item of mail is to be or had been af-
forded.
Know Your Customer - KYC enables banks to know/ understand their customers and their
Meaning of Customer
A person or entity that maintains an account and/or has a business relationship with the
Bank;
One on whose behalf the account is maintained (i.e. the beneficial owner);
Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and Any per-
son or entity connected with a financial transaction, which can pose significant reputation
or other risks to the Bank, say, a wire transfer or issue of a high value demand draft as a
single transaction.
DRESS PROOF
The identification of a customer is a very critical process with a view to protect the customer
interests by preventing from fraudsters who may use the name, address and forge signature to
undertake illegal business activities, encashment of stolen drafts, cheques, dividend warrants,
etc. This also helps to safeguard banks from unwittingly used for the transfer of deposit of
funds derived from criminal activity or for financing terrorism. Identification of customers
will also help to control financial frauds, identify money laundering and suspicious activities,
No, KYC requirements have always been in place and Banks have been taking KYC docu-
ments in accordance with the guidelines issued by RBI from time to time. RBI has revisited
the KYC guidelines in the context of recommendations made by the Financial Action Task
Force (FATF) on Anti Money Laundering standards and on Combating Financing of Terror-
ism and enhanced the KYC standards in line with international benchmarks
Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on No-
vember 29, 2004 on Know Your Customer [KYC] Standards – Anti Money Laundering
[AML] Measures, all banks are required to put in place a comprehensive policy framework
Legal: The Prevention of Money Laundering Act, 2002 (PMLA) which came into force from
July 1, 2005 (after “rules” under the Act were formulated and published in the Official Ga-
zette) also requires Banks, Financial Institutions and Intermediaries to ensure that they follow
certain minimum standards of KYC and AML as laid down in the Act and the “rules” framed
there under
APPLICATION OF KYC
• Opening a subsequent account where documents as per current KYC standards not been
• Opening a Locker Facility where these documents are not available with the bank for all the
• When the bank feels it necessary to obtain additional information from existing customers
• When there are changes to signatories, mandate holders, beneficial owners etc. KYC will
also be carried out in respect of non-account holders approaching the bank for high value
one-off transactions.
Reputation Risk : We always need the confidence of Depositors and the Market
Operational Risk : Loss on account of failed process \ people \ systems \ external events
Legal Risk: Loss due to any legal action against the bank and its staff.
Operation is defined as managing work efficiently and effectively in a given period of time.
Optimal Strategy- OR isn't just about math and stats- game theory is also a huge part as well.
What is the best course of actions for a company? What about after you add in certain con-
Major constraints in this given sector is time, it is expected to minimize the time of account
Proper information including code and details should be provide to the client without any error.
Maximize the quality of service for which client satisfaction is the top most priority.
CONCLUSION
KYC policies help in tracking the customers and identify the source of funds.