CLICK HERE TO DOWNLOAD NEW KYC FORMS
KYC is an acronym for Know your Client, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to know their Clients. This would be in the form of verification of identity and address, providing information of financial status, occupation and such other demographic information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.
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 the investors, including Guardians and Power of Attorney holders, for any investment in mutual funds, irrespective of the amount, for carrying out the transactions such as new/ additional purchase, switch transactions, new SIP/ STP/ DTP registrations received from effective date i.e. January 1, 2011. The applications received for the aforesaid transactions without complying with KYC procedure are liable to be rejected. However, the said procedure is not applicable for redemption/ repurchase.
Investors have to provide the relevant documents and information ONLY ONCE for complying with KYC, instead of providing the required documents again and again to different mutual funds in which one would like to invest. After that Investors could invest in the schemes of all mutual funds by merely attaching a copy of the KYC acknowledgement slip with the application form / transaction slip when investing for the first time in every folio (Post KYC) in each Mutual Fund house, without the necessity to submit the KYC documents again.
Who all need to be KYC Compliant?
1 Any individual(s) or non-individual(s)
2 Guardian investing on behalf of minor.
3 Constituted as Power of Attorney (PoA) holder(s), in case of investments through PoA.
4 If an individual becomes an Investor due to an operation of law, e.g., transmission of units upon death of an investor, the claimant / person(s) entering the Register of unit holders of the Fund will be required to be KYC compliant before such transfer can take place.
NEW KYC Norms
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 has introduced the concept of KYC Registration Agency (KRA) for the purposes of a unified KYC in the securities market. This is effective January 1, 2012. All major Asset Management companies are SEBI registered intermediary is a point of service for processing KYC applications. KRA shall send a letter to the investor within 10 working days of the receipt of the initial/updated KYC documents from the Mutual Fund, confirming the details thereof. The KYC done with us will be valid for all the SEBI registered intermediaries viz. Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment Schemes, etc.
Apart from KYC, it is mandatory for intermediaries including mutual funds to carry out In-Person Verification (IPV) of all its new investors. The IPV carried out by any SEBI registered intermediary can be relied upon by the Mutual Fund. Asset Management Company Employee and NISM/AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for Mutual Fund investors. Further, in case of any applications received directly (i.e. without being routed through the distributors) from the investors, the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.
CHECK YOUR KYC STATUS CLICK HERE
KYC is an acronym for Know your Client, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to know their Clients. This would be in the form of verification of identity and address, providing information of financial status, occupation and such other demographic information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.
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 the investors, including Guardians and Power of Attorney holders, for any investment in mutual funds, irrespective of the amount, for carrying out the transactions such as new/ additional purchase, switch transactions, new SIP/ STP/ DTP registrations received from effective date i.e. January 1, 2011. The applications received for the aforesaid transactions without complying with KYC procedure are liable to be rejected. However, the said procedure is not applicable for redemption/ repurchase.
Investors have to provide the relevant documents and information ONLY ONCE for complying with KYC, instead of providing the required documents again and again to different mutual funds in which one would like to invest. After that Investors could invest in the schemes of all mutual funds by merely attaching a copy of the KYC acknowledgement slip with the application form / transaction slip when investing for the first time in every folio (Post KYC) in each Mutual Fund house, without the necessity to submit the KYC documents again.
Who all need to be KYC Compliant?
1 Any individual(s) or non-individual(s)
2 Guardian investing on behalf of minor.
3 Constituted as Power of Attorney (PoA) holder(s), in case of investments through PoA.
4 If an individual becomes an Investor due to an operation of law, e.g., transmission of units upon death of an investor, the claimant / person(s) entering the Register of unit holders of the Fund will be required to be KYC compliant before such transfer can take place.
NEW KYC Norms
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 has introduced the concept of KYC Registration Agency (KRA) for the purposes of a unified KYC in the securities market. This is effective January 1, 2012. All major Asset Management companies are SEBI registered intermediary is a point of service for processing KYC applications. KRA shall send a letter to the investor within 10 working days of the receipt of the initial/updated KYC documents from the Mutual Fund, confirming the details thereof. The KYC done with us will be valid for all the SEBI registered intermediaries viz. Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment Schemes, etc.
Apart from KYC, it is mandatory for intermediaries including mutual funds to carry out In-Person Verification (IPV) of all its new investors. The IPV carried out by any SEBI registered intermediary can be relied upon by the Mutual Fund. Asset Management Company Employee and NISM/AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for Mutual Fund investors. Further, in case of any applications received directly (i.e. without being routed through the distributors) from the investors, the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.
CHECK YOUR KYC STATUS CLICK HERE
