Come December 1, 2012 you may not be able to invest in mutual funds if you have done your KYC registration before January 2012.
With the objective of simplifying KYC (Know your Customer) norms for investors & to bring about uniformity across all intermediaries, market requlator SEBI (Securities and Exchange Board of India) has issued 3 circulars – MIRSD / SE / Cir-21 / 2011 dated October 5, 2011, MIRSD / Cir- 23 / 2011 dated December 2, 2011 and MIRSD/ Cir- 26 / 2011 dated December 23, 2011.
Key Highlights of SEBI Circulars..!
* With effect from January 1, 2012, Centralized KYC registration process through SEBI Registered KYC Registration Agencies (KRAs) has been implemented. Each investor has to undergo a uniform KYC process only once in the securities market.
* Mandatory In Person Verification (IPV) for new investors investing post 1st January 2012 at the time of submission of KYC application request.
* The KYC information of MF (mutual fund) investors who have completed their KYC through CDSL Ventures Ltd (CVLMF) up to December 31, 2011 have been uploaded by CVL in their KRA system (CVL-KRA) with the status as "MF – VERIFIED BY CVLMF".
* While uploading KYC data into the KRA system, intermediaries are required to highlight such 'missing / not available' KYC information of a customer which was either not required or / not taken, but is now mandatory based on uniform KYC guidelines issued by SEBI.
What do you, as an Investor, need to do..!?
* In case you are an existing investor of Mutual Fund & if you are already KYC Compliant as per AMC records then there will be no effect on subsequent transactions (or ongoing SIPs) in the existing folios / accounts which is KYC compliant under the erstwhile centralized KYC with CVL (CVLMF).
* In case you are an existing investor of MF but not KYC Compliant, then you will have to submit the standard KYC Application forms uploaded on www.cvlkra.com along with supporting documents at any of the SEBI registered intermediaries.
* In Person Verification (IPV) will be mandatory at the time of KYC Submission.
* If you choose to invest with a new MF i.e. invest in a new MF of other AMC where you have not invested earlier (or opened a folio earlier), you will be required to submit 'missing / not available' KYC information & complete the IPV requirements.
^ In case of Individuals, missing / not available details are as follows:
• Father’s / Spouse Name
• Marital Status
• Nationality
• Gross Annual Income or / Net worth as on recent date
• In-Person Verification (IPV)
The individuals can use the 'KYC Details Change Form' available on www.cvlkra.com.
^ In case of Non Individuals, KYC needs to be done afresh due to significant & major changes in KYC requirements.
Note that it is mandatory for the investor to complete the above formalities on or / before November 30th 2012, for opening a new account / folio with any other new MF.
The last day to submit your KYC change form is November 30, 2012. If the form is not submitted, you will not be allowed to make new investments in mutual funds from December 1. However, if you already have a folio, you may continue investing in the same folio.
The new norms will not affect your existing investments or /folios and you can redeem your units any time. However, your AMC will not allow you to create a new folio.
Submit a KYC change form along with a copy of PAN (Permanent Account Number) card. You may download the change form www.cvlkra.com. You only need to fill the first 2 sections. And do remember to attach a self-attested photo copy of your PAN card.
You may send the form to a local CAMS / or Karvy service centre or send it directly to your AMC where you already have a folio.
Updation of 'missing / not available' KYC information along with IPV is currently a one-time requirement & needs to be completed with any one of the MF i.e. need not be done with all the MFs where you have existing investments.
Once the same is done then the KYC status at CVL-KRA will change to 'Verified by CVL KRA' after due verification. In such a scenario, where the KYC status changes to 'Verified by CVL KRA', you need not submit the 'missing / not available' KYC information to MFs again.
This above activity will enable you the benefit of investing in securities market without any hassle in future.
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