Mutual Fund Investments- E-KYC

Mutual Fund Investments-  E-KYC

Know Your Customer (KYC) compliance is a prerequisite for investments in mutual funds.

Investors are required to fulfill KYC requirements with a KRA (KYC registration agency) once and this is applicable to all investments across funds.

KYC formalities can now be completed online, a hassle-free and quicker approach to investing.E-KYC is based on the Aadhaar number.

Where

The investor has to log into the KRA website and enter basic details such as PAN number, email id, AMC name, bank name, date of birth, mode of holding and tax status.

On providing these details, the KYC compliance status of the investor will be displayed. If the investor is not KYC compliant, he is required to add his Aadhaar number and registered mobile number.

Aadhaar-based authentication..!

After providing the Aadhaar number and registered mobile number, the Aadhaar authentication screen is displayed. An OTP is sent to the registered mobile number. The same needs to be entered on the screen along with pin code.

Uploading documents..!

After Aadhaar authentication, the investor is required to upload a self attested copy of e-Aadhaar.

Further, he will be required to select consent declaration displayed on the screen for further processing of the request.

Verification..!

The Aadhaar and registered mobile number of the investor is verified with the Aadhaar database of the UIDAI.Upon successful verification, the screen displays that the investor is e-KYC verified and can carry out transactions in mutual funds.


Points to note..!

This facility is currently available only for individual investors with single mode of 
holding.

SEBI currently permits investment of Rs. 50,000 each financial year per mutual fund for Aadhaar based e-KYC using OTP verification.

Once the investment value crosses Rs. 50,000 in a financial year, the investor will have to undergo in-person verification.

Courtesy : Centre for Investment Education and Learning (CIEL).

Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta


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