The approaching deadline of March 31, 2024, serves as a loud alarm for mutual fund holders to be prepared. One significant change impacting mutual fund investors is the requirement to undergo Know Your Customer (KYC) procedures again. Mutual fund registrar and transfer agents (RTAs) CAMS and KFintech are urging MF investors via email to ensure they comply with this essential requirement.
March 31: What will happen if investors miss the deadline?
According to Ashish Aggarwal, Director, Acube Ventures, non-compliance could mean a sudden halt to the crucial transactions of SIPs, SWPs, and redemptions from April 1.
What is RE-KYC?
This RE-KYC is a regulatory need, in the sense that it is SEBI’s master circular on norms of KYC and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, said Aggarwal.
What should investors do?
Mutual fund investors who haven’t completed their KYC using officially valid documents must do so by March 31. Valid documents include an Aadhaar card, passport, and voter ID card. “Investors are advised to pay attention to this vital task, which aims to ensure continuous trading to put the funds they have accrued and the plans that they have made to safety. Indeed, some sweat today allows you to rest assured that the path for you to a profitable and worry-free investment lies ahead,” said Ashish Aggarwal.
Documents considered as officially valid, requiring re-KYC, comprise identity cards issued by central or state governments, letters from gazetted officers, utility bills, property or municipal tax receipts, bank account or post office account statements, as well as pension or family pension payment orders, Mint reported.
On processing the KYC data, the updated KYC information is displayed on all mutual fund-linked equities of the investor to which their PAN is linked. If you are someone who is looking for an easier way, eKYC for mutual funds offers you such convenience. Simply follow these steps:
Step 1: Select between CVL (CDSL Ventures Limited) or Katau KRA’s (Karvy KRA) Website – You can visit the official website of either one of the KYC certification agencies like Karvy KRA or CDSL Ventures Limited.
Step 2: Registration – Account registration or login is mandatory to the KRA web platform.
Step 3: Provide Personal Details – Provide the following personal information and upload documents of any relevant personal documents, including your PAN card and Aadhaar card along with a cancelled cheque for bank proof.
Step 4: Finishing Online KYC – After completing your electronic KYC application, they will provide you with an email confirmation along with an SMS, including your digital KYC registration ID.
Keep in mind that the KYC redo cannot be done online; instead, it must be done by submitting the actual forms and documents in person.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 29 Mar 2024, 01:20 PM IST