KYC

KYC FAQ

KYC Form

KYC Centres

PAN 

KYC

5th January, 2008

Dear Friends,

Good wishes and wish you all a joyous year 2008.

Come Jan and Feb 2008 and Security Exchange Board of India (SEBI) and Association of Mutual Funds of India (AMFI)  require / make mandatory regulations for Mutual Fund investors to provide copy of PAN Card for all investments with effect from 1st January 2008 and comply with  KYC procedures.

1. PAN CARD : 

.01 Earlier, an investor could provide copy of form 49 together with acknowledgement but now as a proof of PAN, only copy of PAN Card will be acceptable.

.02 Such copies should be attested by manager of scheduled commercial bank or a notary public or a distributor.

.03 Detailed guide-lines are provided as regards PAN Card in maiden name and in case of married women.

2. KYC Formalities:

.01 From 1st February 2008, all investments in Mutual Fund of Rs.50,000/0 or more will require prior compliance of KYC (Know your customer) and submission of KYC application.

.02 In case of existing investments, once the KYC formalities are completed, a copy of KYC acknowledgement should be submitted to all Mutual Funds with a list of folio numbers.

.03 Completed applications should be submitted to service centers of Central Depository Services Ltd.

.04 Details of KYC norms  ;  KYC application form  ; FAQs and service centers in various cities can be found 

herein. 

.05 If you have any queries, you may write to us at : advisor@nrimutualfunds.com 

Best wishes.

RAJESH H DHRUVA

 

 

KYC FAQ

KYC Form

KYC Centres

 

Application form for PAN

OLD PAN Application Form

49A - For Citizens of India Residing in India

49AA - For Foreign Citizens of Indian Origin (PIO) Resident in India or Abroad

49A & 49AA - Instructions Notification

 

Dear Friends,

1. " The Mummy Returns & with vengeance ", Effective from 2.7.07 investments in Mutual Funds all class of investors including NRIs will require intimation of Permanent Account Number [PAN].

2. PAN will be required for ;

.01 New applications,

.02 Additional investments,

.03 But Switches between schemes & Redemptions will not require PAN.

.04 Existing investors will inform PAN by 31-12-07 as re: existing schemes.

3. An NRI can avail a PAN by making an application to the Income Tax office or Office of Unit Trust of India

4. An NRI is required to submit the following :

.01 Copy of passport 

02 Photograph

03 Copy of Visa page in case of an Indian citizen

04 Proof of residence  being  any one of the documents be that  passport ,  bank statement or driving license , showing your address .

5. In case of a POA or representative assessee i.e. say, parents or brothers or even a friend's details being.

01 photograph of representative assessee and 

02 Proof of residence representative assessee being  any one of the documents be that telephone bill, electricity bill, ration card,  bank statement or driving license , showing the address of representative assessee.

6. If you wish, you can avail our services, wherein we will provide .

01 list of information required for availing PAN 

02 original copy duly filled in being dispatched to overseas address

03 submission of duly signed PAN application

04 availing copy of PAN 

05 provide guidance where necessary

7. For said purpose you may write to us at : keynote@nribanks.com

8. SEBI circular No. NSDL/POLICY/2006/0007 dated 03-03-2006

9. PROFORMA OF APPLICATION / PLEASE NOTE THAT THE APPLICATION CAN NOT BE MADE IN DOWNLOADABLE FORM. THE APPLICATION HAS TO BE IN THE PHYSICAL FORM AVAILED FROM TAX OFFICE OR UTI OFFICE.

Best wishes.

RAJESH H DHRUVA

 

 

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 information of financial status, occupation and such other demographic information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.

What are the KYC requirements for a Mutual Fund Investor?

Individual investors will have to produce his Proof of identity (Photo PAN card copy or PAN card copy and copy of the passport, driving license etc.) and Proof of Address (any valid documents listed in section B of the KYC Application Form for Individuals). Non –Individual Investors will have to produce certain documents pertaining to its constitution/registration to fulfill the KYC process. A list of Mandatory Certified Documents to be submitted can be found in section C of the KYC application form for Non-Individual Investors. .

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 a 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 repects, 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,

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.

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.

From what date is it mandatory for an investor to be KYC Compliant?

With effect from 01 February 2008, any investor investing Rs. 50,000 and above would be required to be KYC compliant.

To whom is a KYC applicable? Is there any exemption?

Currently, all investors (Individuals or Non Individuals) who wish to make an investment of Rs. 50,000 or above will be required to be KYC Compliant. This would also apply to new Systematic Investment Plan (SIP) transactions on or after 01 February 2008, if each installment of value greater than or equal to Rs.50,000. Please find the list of personnel who are required to be KYC compliant:

Joint Holders: Joint holders (including first, second and third if any, are required) to be individually KYC compliant before they can invest with any Mutual Fund. . e.g. in case of three joint holders, all holders need to be KYC compliant and copies of each holder’s KYC Acknowledgement must be attached to the investment application form with any Mutual Fund.

Minors: In case of investments in respect of a Minor, the Guardian should be KYC compliant and attach their KYC Acknowledgement while investing in the name of the minor. The Minor, upon attaining majority, should immediately apply for KYC compliance in his/her own capacity and intimate the concerned Mutual Fund(s), in order to be able to transact further in his/her own capacity.

Power of Attorney (PoA) Holder: Investors desirous of investing through a PoA must note that the KYC compliance requirements are mandatory for both the PoA issuer (i.e. Investor) and the Attorney (i.e. the holder of PoA), both of whom should be KYC compliant in their independent capacity and attach their respective KYC Acknowledgements while investing.

Financiers will have to be KYC compliant at the time of Lien Marking.

For transmission (In case of death of the unit holder): If the deceased is the sole applicant, the claimant should submit his/her KYC Acknowledgement along with the other relevant documents to effect the transmission in his/her favour

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.

In case of existing investors when and how will the KYC norms be introduced?

KYC norms are applicable to all investors. It is in the interest of all Investors to obtain KYC Acknowledgement and submit it to the Mutual Fund to avoid any inconvenience in future.

Once an account is opened with a Mutual Fund by 1 st, 2 nd & 3 rd holder by completing the necessary formalities and the investor’s return to make a fresh investment, do they need to furnish the necessary documents again?

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.

What are the consequences of KYC cancellation/rejection?

In the event of any KYC Application Form being found deficient for lack of information / insufficiency of mandatory documentation, further investments will not be permitted.

Does the KYC Acknowledgement have an expiry date?

No. Once the KYC Acknowledgement is obtained and informed to a Mutual Fund, it will be registered against the folio and quoted in all future account statements. The same will exist in perpetuity, unless cancelled by CVL.

What happens if I have multiple folios/ accounts with a Mutual Fund?

You can inform the Mutual Fund to update the KYC Acknowledgement against all the folios/accounts you have with it. However, each of the holders in these folios/accounts should be KYC Compliant.

Is there a charge I need to pay to get myself KYC Compliant?

Currently, KYC is being done free of cost.

I am an NRI residing outside India. How do I get myself 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). You may also approach your distributor for a form. 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 for you.

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 to English for submission. The documents can be attested, by the Consulate office or overseas branches of scheduled commercial banks registered in India

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.

What about Minor becoming Major?

Upon a Minor attaining the age of majority (i.e. on completing 18 years of age), he/she must be KYC Compliant and have KYC Acknowledgement of their own. The same should be informed to the Mutual Fund where he/she holds an investment, along with other details such as the Bank Details, Signature, etc as per the present requirements of such Mutual Fund.

Whom do I inform about change of Name/Address/Status/Signature etc?

You should intimate your change of Name / Address / Status /Signature etc. to any convenient PoS. You need to quote / submit a copy of your KYC Acknowledgement, and proof (in case of new address). You should provide for at least 7 days for the change of address to take effect with all the Mutual Funds with whom you are invested. Please note that you should not write to the Mutual Fund or its Registrar for the change of address (unless as a designated PoS). The specified form can be obtained from the AMFI/Mutual Fund website. All details of the holders in the Mutual Fund records will be replaced by the address details available in the CVL record.

If I am already providing my PAN/PAN Proof for my investment in Mutual Fund. Is that not sufficient for meeting the requirement of KYC?

The requirement of providing your PAN along with proof is sufficient for proof of identity. However, the current requirement for KYC requires the Mutual Fund to verify identity, address as well as obtain further information about the investor.

Why do I need to give my Income details? How can I be sure that it will not be misused?

As per PMLA, it is mandatory for Mutual Funds to obtain financial status details from its investors. It is for this reason that the Income details are sought. Please note that no proof / income documents are required. The information given you in the KYC Application form will be treated in a confidential manner and used for regulatory purposes if called for.

Do I need to inform about my change of Income status?

Yes. I you find an increased/decrease in your income, which would effectively, changed the income bracket that you have declared in the KYC Application form, you should apply to any convenient PoS in the specified form. No proof is needed.

Can an investor give a COA (Change of Address) along with redemption request?

The redemption transaction accompanied by a KYC Acknowledgement form is likely to be processed without effecting the change of address request.

Is the KYC Acknowledgement a separate form or is it a part of the Mutual Fund application. Which of the forms require being time-stamped?

KYC Acknowledgement will be done on the photocopy of the form. Time stamping is not required on the KYC Acknowledgement.

What do I do once I have received my KYC Acknowledgement?

Once the investor is KYC compliant, it will be required to intimate his KYC details to all the Mutual Funds with whom it has investments. The same will be updated in the records of the Mutual Fund.

For signature difference in investor request, Mutual Funds generally ask for a banker attestation. Since a signature is not available with identity proof, will you still insist on banker attestation for signature difference?

Signature verification is done by Mutual Funds to protect an investor from losses. As such, Mutual Funds may follow extra due-diligence if signatures are not matching, such as getting Bank attestation for such transactions. This could be independent of the KYC procedure.

What if I have already completed the earlier KYC procedure with CVL ?

Scenario 1
If the KYC 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 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.

 

 Proceed to pay for  PAN Application

 

 

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, 
Pl. provide your details at :
nrimf@femaonline.com 

 

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