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

1. Why is income proof required for Special Category Clients (CSC)?
Special Category Clients (CSC), as per SEBI guidelines, are subject to enhanced due diligence. This includes clients such as Non-resident Indians, high net worth individuals, trusts, charities, NGOs, organizations receiving donations, companies with close family shareholdings, politically exposed persons (PEP), and clients with questionable reputations. Income proof is mandated during the account opening or Re-KYC process to comply with regulatory requirements and ensure transparency.

2. What categories fall under Special Category Clients (CSC)?
Special Category Clients (CSC) encompass Non-resident Indian clients, high net worth clients, trusts, charities, NGOs, organizations receiving donations, companies with close family shareholdings, politically exposed persons (PEP), and clients publicly known to have questionable reputations.

3. What documents can be submitted as income proof for Special Category Clients (CSC)?

Income proof for Special Category Clients (CSC) can be provided through any of the following documents:
Bank statement or passbook for the last six months.
The latest salary slip.
Form 16 or Income Tax Return (ITR) acknowledgement.
Net worth certificate.
Statement of demat holdings.