Investors in Mutual Funds to comply with 'KNOW YOUR CLIENT' (KYC)

What is KYC?? KYC means Know Your Client

Guidelines issued by Securities and Exchange Board of India under The Prevention of Money Laundering Act, 2002 (�PMLA�) requires Mutual Funds to follow enhanced know your Client (KYC) norms. This FAQ is only meant to clarify certain questions relating to enhanced KYC procedures. Please contact your distributor/ Concerned Mutual Fund for further clarifications.
W.E.F. February 1, 2008 Investors in Mutual Funds investing Rs. 50,000/- and above are required to comply with Know Your Client (KYC) norms under the Prevention of Money Laundering Act 2002 (PMLA).

KNOW YOUR CLIENT (KYC) :

In order to comply with regulatory provisions under the Prevention of Money Laundering Act 2002, Rules issued thereunder and related guidelines/circulars issued by SEBI, KYC formalities are required to be completed for all Unit Holders, including Guardians and Power of Attorney holders, for any investment (whether new or additional purchase) of Rs. 50,000 or more in mutual funds. For the convenience of investors in mutual funds, all mutual funds have made special arrangements with CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. (CDSL)). DOCUMENTS AND INFORMATION TO BE PROVIDED BY INVESTORS: Investors in mutual fund schemes have to provide: (1) Proof of Identity (2) Proof of Address (3) PAN Card (4) Photograph WHERE TO COMPLETE THE FORMALITIES: Investors could complete the formalities by submitting the KYC form (Click here for Individual KYC Form) and relevant documents at the Points of Services (POS). (Click here for List of POS) To start with, these POS will be the select branches / offices of mutual funds, registrars and select branches of some distributors. The application form for complying with KYC will be available from these POS. The application form could also be downloaded from the websites of all mutual funds (Click here for list of Mutual Funds with websites) and CVL www.cvlindia.com. Investors could contact offices of mutual funds, registrars and mutual fund distributors (ARN Holders) for further details and assistance. What is a KYC Application Form? A KYC Application Form has been designed for Individual and Non-Individual Investors separately. The soft copy of these KYC forms will be made available on the website of all mutual funds, AMFI and Central Depository Services (India) Limited (CDSL). You may also approach your distributor for a form. It is important to read the instructions printed on the KYC Application Form while filling-up the form. Source: Amfi india (http://www.amfiindia.com)