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KYC is mandatory for all Mutual Fund investments from February 1st
2008.
With effect from 01 February 2008, any investor (all applicants) investing
Rs. 50,000 and above into mutual funds (either through HDFC Online Mutual
Fund or physical application) would be required to be KYC compliant with CVL
without which the transactions may be liable to get rejected by the mutual
fund houses.
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What Is KYC ?
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 financial status, occupation and such other
demographic information to CDSL Ventures Ltd. (CVL), a wholly owned subsidiary
of Central Depository Services (India) Ltd. (CDSL). Applicant must be KYC
compliant while investing with any SEBI registered Mutual Fund.
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Where and how does one get to be KYC compliant? Does
the investor have to repeat the KYC process with every Mutual Fund?
The Mutual Fund Industry has appointed CDSL Ventures Limited (CDSL), a wholly
owned subsidiary of Central Depository Services (India) Limited, to carry
out the KYC compliance procedure.
- CVL through its Points of Service (POS) will accept KYC application
forms, verify documents and provide the KYC Acknowledgement (across the
counter on the best effort basis).
- The list of POS will be displayed on the websites of Mutual Funds,
CDSL and AMFI. Once the KYC is duly completed in all respects, the investor
needs to produce a copy of the acknowledgement to the fund where the investor
desires to invest. There is no need to repeat the KYC individually for
each mutual fund investment.
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Should the investor visit POS personally to obtain
KYC Compliance?
No. If the investor is not in a position to visit POS personally, the KYC
application form along with the necessary documents (including originals if
the copies are not attested) can be sent through the distributor or representative,
who can arrange to fulfill the KYC obligation and obtain the KYC Acknowledgement
through any of the POS.
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How does the investor transact in Mutual Fund after completing the KYC process?
Investors must attach their KYC acknowledgement along with the Investment
Application Form(s) / Transaction Slip(s) while investing for the first time
in every folio. Applications Forms / Transaction Slips not accompanied by
KYC Acknowledgement are liable to be rejected by the Mutual Funds. If you
do not obtain a KYC Acknowledgement, you will not be able to invest Rs. 50,000
or more in a Mutual Fund.
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What if the investor has already completed the earlier
KYC (MIN) procedure with CVL?
Scenario 1 :
If the KYC (MIN) was completed by submitting the PAN, the Acknowledgement
obtained at that time can be enclosed along with the Investment Application
Form(s) / Transaction Slip(s) while investing for the first time in every
folio as the PAN number will be stated on the said acknowledgement. You need
not repeat the process now.
Scenario 2 :
If the KYC (MIN) was completed without submitting the PAN but with other proof
of identity documents, for such cases, CVL will send out a communication to
the respective investors requesting them to submit self attested copy of PAN
card for KYC compliance.
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What is the process for NRIs residing outside
India? How can he be KYC Compliant?
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).
The same duly completed along with the necessary attested documents can be
submitted at the POS or mailed to your representative or distributor who can
complete the KYC formalities.
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Are there any special requirements for an NRI?
Yes. In addition to the certified true copy of the passport; certified true
copy of the overseas address and permanent address will also be required.
If any of the documents (including attestations / certifications) towards
proof of identity or address is in a foreign language, they have to be translated
in English for submission. The documents can be attested, by the Consulate
office or overseas branches of scheduled commercial banks registered in India.
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Is there any special requirement for a PIO
(Person of Indian Origin)?
The requirements applicable to an NRI will also apply to a PIO. However, additionally,
he will need to submit a certified true copy of the PIO Card.
To know more on KYC please click here : http://www.amfiindia.com
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How to check my KYC status ?
- Step 1: Visit www.cvlindia.com
and click on "Inquiry on KYC"
- Step 2: Enter the PAN number and click on SUBMIT.
- Step 3: If KYC compliant the name of PAN holder appears along with
the status of KYC. The investor can take a print out of this
andwill suffice as document of acknowledgement.
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