IPV (In-Person Verification) is a process mandated for all Depository Participants (DPs) to verify the identity of their clients when opening Demat accounts. During this process, the DP must establish the identity of the applicant(s) (including the guardian in the case of a minor account) by comparing the photograph(s) affixed to the KYC Application Form and proof of identity documents with the concerned person. For joint accounts, IPV must be carried out for all account holders.

DPs may also use a web camera for conducting IPV for depository account openings, provided they comply with other SEBI guidelines and circulars related to account openings, including document verification.

Procedure for IPV:

Upon submission of the KYC Application Form, account opening form, proof of identity and address documents, and PAN details by the applicant(s), the DP should follow the steps below:

1. Identity Verification:  

Verify the identity of the applicant(s) by ensuring the photograph(s) and proof of identity documents match the concerned person.

2. Recording IPV Details:  

After verification, the DP must ensure the following details are recorded on the KYC Application Form:

• Name of the person performing IPV
• Their designation
• The organization
• Their signature
• The date

3. Manner of Recording IPV Details:

• The DP can record the IPV details by affixing a stamp, printing the details, or writing them on the KYC Application Form.
• If IPV is conducted using a web camera, the DP must note "IPV through webcam" on the form.

4. Placement of IPV Details:

• The IPV details can be recorded at any suitable place on the KYC Application Form without obscuring other information.
• For non-individual entities (e.g., unregistered trusts), where the KYC Application Form is filled out for the entity but the account is in the name of an individual (e.g., trustee), the IPV details can be recorded in the annexure where the details of trustees, kartas, etc., are mentioned.
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5. Prohibition of Separate Sheets or Stickers:  

DPs are not permitted to attach separate sheets or affix stickers to record IPV details on the KYC Application Form.

Use of IPV by Other Entities:

The IPV performed by one SEBI-registered intermediary can be accepted by another. For instance:

• Stock Brokers: Sub-brokers or Authorized Persons (approved by stock exchanges as per SEBI Circular No. MIRSD/DR-1/Cir-16/09 dated November 6, 2009) can perform IPV.
• Mutual Funds: Asset Management Companies (AMCs) and distributors who comply with the certification process of the National Institute of Securities Market (NISM) or the Association of Mutual Funds in India (AMFI) and have undergone the "Know Your Distributor (KYD)" process can conduct IPV.
• In cases where mutual funds receive applications directly from clients (not through distributors), they may accept IPV performed by scheduled commercial banks.

For NRIs/Foreign Nationals, where conducting IPV is not feasible, photocopies of KYC documents must be attested by one of the following entities:

• Notary Public
• Any Court
• Magistrate
• Judge
• Local Banker
• Indian Embassy or Consulate General of the country where the NRI or foreign national resides.

The attestation must confirm that the documents have been verified with the originals.

Additional Guidelines:

• Separate KYC Application Forms must be used to collect information for each joint account holder (first, second, and third holders) as well as the guardian, in cases where the sole account holder is a minor.
• A demat account can have a maximum of three holders.
• Proof of identity must be obtained for all account holders.