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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