Why was KYC introduced in financial markets?

Why was KYC introduced in financial markets?
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One of the main reasons for KYC to be introduced in financial markets was to limit/prevent cases of fraud, tax evasion and money laundering. In order to do that, the source and destination in case of any financial transaction must be found out. This is where KYC was strengthened and in cases of investments and bank accounts, these processes were made mandatory and stringent.

SEBI, the securities market regulator, has made it easier for the investors in securities markets through introduction of cKYC – common KYC for entire securities markets. Once you have completed this, you can buy or sell any securities markets product.

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