December 2012

Investment in Mutual Funds & KYC Compliancy requirements

Investment in Mutual Funds ,KYC Compliancy requirements, KYC Change Detail Form, SEBI, in house person verification.

Securities and Exchange Board of India (SEBI) has prescribed the requirements, for the implementation of Uniform Know Your Customer (KYC) process across all intermediaries registered with SEBI.
Pursuant to the above, the existing / new investors of Mutual Funds are required
to take note of the following:

1. Investment by Investors who are KYC Compliant through KRAs (KYC Registration Agency) on or after January 1, 2012 :
No action is required by such investors and they may invest in any Mutual Funds. However,
Non-individual entities like Corporate, Partnership Firm, Trust etc are required to submit their Balance Sheet for every Financial Year on an ongoing basis within a reasonable period to KYC Registration Agency (KRA).

2. Investment in existing folios by Investors who are CVL MF KYC Compliant prior to January 1, 2012:
In case of the existing investors who are CVL MF KYC Compliant through the erstwhile
centralized KYC registration agency i.e. CDSL Ventures Ltd. (CVLMF), there will be no effect
on their subsequent transactions (including Systematic Investment Plan) in their existing folios/ accounts. However, the KYC status of such investors will continue to reflect as “MF – VERIFIED BY CVLMF” in the CVL – KRA system.

3. Investment by new Investor who is CVL MF KYC Compliant:
In case a new investor who is CVL MF KYC Compliant wishes to invest as a sole investor or he wishes to invest jointly with another existing investor/s who is/are also CVL MF KYC Compliant, then such investor/s will have to submit the “KYC Details Change Form” along with the investment application and complete the IPV process.

4. Investment by Non-KYC Compliant Investors (Individual or Non-Individual):

Non-KYC compliant investor/s desirous of investment, are required to submit the duly filled
in KYC Application Form along with necessary documents for completion of KYC certification through KYC Registration Agencies (KRAs) and complete the “In-person Verification (IPV)” at the time of making any investment. 

5. Requirements from CVLMF KYC Compliant investors (i.e. KYC compliant prior to January 1, 2012):

I. Individual Investors:
In case, the individual investor is KYC compliant prior to January 1, 2012, the investor will
have to submit ‘KYC Details Change Form’ with respective applicable documents, (if any)
mentioned therein to update their ‘Missing/Not Available’ details besides completing the IPV process as a one time exercise. After due verification by the respective KRA e.g. M/s CVL, the KYC status will get changed from “MF – VERIFIED BY CVLMF” to “Verified by CVL KRA”.
In case of individuals, ‘missing/not available details’ are as under :
a. Father’s/Spouse Name
b. Marital Status
c. Nationality
d. Gross Annual Income or Net worth as on recent date.
e. In-person Verification (IPV)
II. Non – Individual investors:
In case of all Non – individual investors who are KYC compliant prior to January 1, 2012,
KYC process with IPV needs to be done afresh due to significant and major changes in KYC
requirements.
In case of opening of a new folio with any Mutual Fund, the individual & non-individual investors will have to comply with the respective procedures mentioned above. The above procedure is also applicable for Guardian (in case of Minor) / Power of Attorney
holder as well.

The necessary forms are available on our post – here

Simply visit Central Depository Service (India) Ltd website  , Click on the ‘KYC Inquiry’ and type in your PAN number, in order to check your KYC Status.

All the investors are requested to note that the aforesaid formalities which is mandatory from December 1, 2012 for investing with any Mutual Fund.

 

November 2012

Know you Client (KYC) ~ Information you need to know!!

Know Your Client Forms, PAN Card, KYC Forms, AMFI, SEBI Rules, Guidelines, Submission, How long does it take, Demat Account

It is mandatory to have a Permanent Account Number (PAN) and Know your Customer (KYC)  for Investments in Stocks, Mutual Funds. 

Here are some important links where you can get more information regarding KYC : 

1. You can download the form from the AMFI site : Individual KYC Form ~ In case of any change of Information , you need to fill Change KYC form

2. The completed form along the PAN Copy, photograph, proof of Identity and Proof of Address and signed form needs to be submitted at Point of Service (POS). A complete list of PoS is available on the website of AMFI at www.amfiindia.com,  www.cdslindia.com and mutual fund websites.

You will get an acknowledgement after an An In-person verification at the POS, after which the forms will be sent for further processing. 

3. You can check your KYC status online. Simply visit Central Depository Service (India) Ltd website  , Click on the ‘KYC Inquiry’ and type in your PAN number.

Remember, that you need to complete the KYC process only once and the same reference can be used at SEBI registered intermediaries for investing purposes.

All existing investors in mutual funds should Please read the KYC compliancy requirements as per the latest regulatory changes from SEBI, in order to ensure that you are a KYC compliant investor