KYC


PAN & KYC REQUIREMENTS FOR MUTUAL FUND TRANSACTIONS


All investors investing in Mutual Funds are required to be KYC Compliant. Investors can execute financial transactions on their folios only if they are KYC compliant. 

Securities and Exchange Board of India (SEBI) has issued guidelines under The Prevention of Money Laundering Act, 2002 (PMLA) which requires Mutual Funds to follow enhanced Know Your Customer (KYC) norms.

Effective January 01, 2011, KYC has been made mandatory for all category of investors who wish to invest in the schemes of Mutual Fund irrespective of investment amount for all transactions.



 
KYC is an abbreviation for 'Know your Client', a term commonly used for a process of identification of a customer. The Securities and Exchange Board of India (SEBI) has prescribed certain requirements relating to KYC norms for financial institutions and financial intermediaries including mutual fund houses to 'know' their clients. This is in the form of providing the client's identity and address for verification along with his/her financial status, occupation and such other demographic information to CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. (CDSL). For investing with any SEBI- registered mutual fund, you must be KYC compliant.




NEW KYC Norms (w.e.f January 01, 2012)
SEBI, based on feedback from investors, found that though certain basic requirements have been prescribed for Customer Due Diligence (CDD) or Know Your Client (KYC) for various SEBI registered intermediaries such as Mutual Funds, Portfolio Managers, Collective Investment Schemes and Venture Capital Funds, no specific KYC format had been prescribed. As a result, these intermediaries used different KYC formats and supporting documents. Thus, in order to bring uniformity in the Know Your Customer (KYC) process in the securities market and develop a mechanism for centralization of the KYC records and also to avoid duplication of KYC Process across the intermediaries in the securities market; SEBI vide Circular No. MIRSD/SE/Cir-21/2011 dated October 5, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011 introduced the concept of KYC Registration Agency (KRA) effective January 01, 2012.


How to go ahead with KYC Process

 Forms:
                          Revised KYC form (effective January 01, 2012)
 For Individuals            :   Please Click here for (New) KYC Form
For Non-Individuals    :   Please
Click here for (New) KYC Form 



How to check my KYC status? 

Step 1: Visit www.cvlindia.com and click "Inquiry on KYC".
Step 2: Enter your PAN number and click SUBMIT.
Step 3: If you are KYC compliant, your (PAN holder's) name appears along with the status as "VERIFIED" . You can take a print-out of this and it will suffice as a document of acknowledgment.

KYC is mandatory, irrespective of the investment amount, for all categories of investor with effect from 1st January 2011.

Same is applicable for New / Additional Purchases, Switch Transactions, New SIP Registrations (including SIP related products), New STP Registrations (including STP related products like trigger facilities), New DTP Registrations (including DTP related products) received from effective date.

These new and revised guidelines are not applicable for following transactions:

Existing SIP / STP / DTP registrations (and similar facilities) including those received till December 31, 2010 Dividend reinvestment transactions of any amount.


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