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What is the matter?
SEBI has made KYC mandatory for mutual fund investors. Under the new rules, effective from April 1, investors are required to meet certain criteria to transact in mutual funds. Investors have been asked to update or re-KYC by submitting the KYC process to the nearest AMC/RTA branches along with officially valid documents, mainly Aadhaar. But many investors, unaware of the rules, have become unable to make new investments after the Re-KYC deadline. The KYC status of some became invalid because it was not matching with the documents given at the time of registration. The KYC of investors who had registered using any document other than the seven officially valid documents (as per norms) has been put on hold. What problems are coming?
Mutual fund expert Vijay Mantri said that there are many conditions attached to this Re-KYC process. Due to inability to complete these, the transactions done for fresh investment of investors are being rejected. Unit redemptions of many investors are also being stopped. There are also complaints about bounce of existing SIP. This is also affecting the inflow of fund houses. Due to the new rule making Aadhaar card mandatory for KYC, NRIs are facing difficulties in opening accounts with new asset management companies. Association of Mutual Funds in India (RAMFI) has discussed this with SEBI. What should investors do?
PPFAS MF CIO Rajiv Thakkar told that investors need not worry. Talks are going on with SEBI to do fresh KYC. An easy way will emerge. Vijay Minister told that investors should first check their KYC whether it is valid or not. Link Aadhaar and PAN. It is important to have the same name on both, keep this in mind also. If your KYC status is validated, it means that the documents you submitted have been verified. Currently only PAN and Aadhaar can be validated in this manner. If you have given these documents for KYC then your status is likely to be validated. What is KYC status?
KYC status and their effects are different. The status of your KYC can be on hold, registered, validated or rejected. Along with the KYC status, you will also know which KYC Registered Authority (KRA) is in charge of your KYC. If your KYC is validated then it means that the documents submitted by you have been checked. If your KYC status is rejected or on hold then you will need fresh KYC.
2024-05-06 09:45:03
Mumbai: Since new KYC rules have been made mandatory for mutual fund investors, they are facing continuous problems on many fronts. Sources say that a solution is being found. Maybe some simple method will emerge for this. This will be solved through a simple process of 2-3 minutes under DigiLocker, Simple Link by SMS, OTP based Re-KYC etc. Know the complete details…
SEBI has made KYC mandatory for mutual fund investors. Under the new rules, effective from April 1, investors are required to meet certain criteria to transact in mutual funds. Investors have been asked to update or re-KYC by submitting the KYC process to the nearest AMC/RTA branches along with officially valid documents, mainly Aadhaar. But many investors, unaware of the rules, have become unable to make new investments after the Re-KYC deadline. The KYC status of some became invalid because it was not matching with the documents given at the time of registration. The KYC of investors who had registered using any document other than the seven officially valid documents (as per norms) has been put on hold.
Mutual fund expert Vijay Mantri said that there are many conditions attached to this Re-KYC process. Due to inability to complete these, the transactions done for fresh investment of investors are being rejected. Unit redemptions of many investors are also being stopped. There are also complaints about bounce of existing SIP. This is also affecting the inflow of fund houses. Due to the new rule making Aadhaar card mandatory for KYC, NRIs are facing difficulties in opening accounts with new asset management companies. Association of Mutual Funds in India (RAMFI) has discussed this with SEBI.
PPFAS MF CIO Rajiv Thakkar told that investors need not worry. Talks are going on with SEBI to do fresh KYC. An easy way will emerge. Vijay Minister told that investors should first check their KYC whether it is valid or not. Link Aadhaar and PAN. It is important to have the same name on both, keep this in mind also. If your KYC status is validated, it means that the documents you submitted have been verified. Currently only PAN and Aadhaar can be validated in this manner. If you have given these documents for KYC then your status is likely to be validated.
KYC status and their effects are different. The status of your KYC can be on hold, registered, validated or rejected. Along with the KYC status, you will also know which KYC Registered Authority (KRA) is in charge of your KYC. If your KYC is validated then it means that the documents submitted by you have been checked. If your KYC status is rejected or on hold then you will need fresh KYC.