If you are planning to invest in mutual funds, well, you can invest in mutual funds only if you are KYC compliant according to the AMFI circular.
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How Did This Happen?
As per An AMFI circular, it will put an end to the old practice of accepting application forms and cheques alongside KYC forms said the head of operations at a mid-sized mutual fund.
Now, investors will have to first complete their KYC and their status will have to appear as ‘verified’ with the KRA (KYC Registration Agency) such as CVL or CAMS.
How Would This Affect?
So far, a large number of investors had placed in mutual funds without completing their KYC requirements.
Even “Something as basic as PAN card not properly scanned would invite KYC rejection from KRA.
For such investors, it would show ‘KYC’ under process against their name,” said the operations head of a mid-sized mutual fund who did not wish to be named.
He added, “However since the money had already been taken from the investor, he would get units in the fund and would be able to transact just like a KYC verified investor,”.
According to the marketing head at a relatively new fund house on condition of anonymity “As per an AMFI circular, such irregular KYC investors will neither be able to make fresh investments nor redemptions or switches in their mutual fund investment without first completing KYC. Similarly, fresh investors would also have to complete KYC and get verified status before investing,”.
He said, “Some of the older fund houses have a large number of investors with irregular KYC,”.
Alongside applications, AMFI is also slated to circulate a form showing intent to invest in mutual funds. This form will be taken in place of an application form and cheque at the time of doing KYC.
How To Apply For KYC?
Basically, you can get it done either online or offline. You need the below document for KYC.
1. A passport-sized photograph
2. PAN card
3. Identity proof such as your Aadhaar, passport, voter id, or driving license
4. an address proof
While submitting, you need to submit the self-attested copies and produce originals for verification.
How To Get The KYC Online?
Firstly, visit the website of the fund house of your choice, and if it allows eKYC, click on the link and follow the procedure.
You will also need Aadhaar for this or you may visit Cams KRA online (Cams eKYC) and follow the procedure to get eKYC using Aadhar.
How To Get The KYC Offline?
Offline KYC can be done by visiting an AMC office or to any registrar’s (CAMS/Karvy, and so on) point of sale or to any independent financial advisor.
Simply, take a KYC application form, fill it and submit it along with the hard copies of required documents
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