5th January, 2008
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
.05 If you have any queries, you may write to us at : firstname.lastname@example.org
RAJESH H DHRUVA
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
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 : email@example.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.
RAJESH H DHRUVA
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.
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. .
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,
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.
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.
With effect from 01 February 2008, any investor investing Rs. 50,000 and above would be required to be KYC compliant.
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:
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.
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.
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.
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.
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.
Currently, KYC is being done free of cost.
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.
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
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.
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.
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.
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.
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.
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.
The redemption transaction accompanied by a KYC Acknowledgement form is likely to be processed without effecting the change of address request.
KYC Acknowledgement will be done on the photocopy of the form. Time stamping is not required on the 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.