Know Your Customer (KYC) :
Securities and Exchange Board of India (SEBI) has made certain changes in the regulations pertaining to Know Your Client (KYC) procedure for investors w.e.f 1st January, 2012. These changes on the KYC norms are intended to simplify the process, making it uniform across SEBI Registered intermediaries’ viz. Stock Brokers through Stock Exchanges, Depository Participants (DPs) through Depositories, Mutual Funds (MFs), Portfolio Managers (PMs), Collective Investment Schemes (CIS) and Venture Capital Funds (VCFs).
The revised norms will facilitate uniform KYC norms and eliminate duplication of KYC across SEBI registered intermediaries in the securities market. For this purpose, KYC registration is being centralized through KYC Registration Agencies (KRA) registered with SEBI. Henceforth, you need to undertake KYC process only once in the securities market and your KYC details would be subsequently shared with other intermediaries. These changes would be applicable to new investors investing in mutual funds w.e.f 1st January, 2012. However,existing KYC compliant investors of the Mutual Fund can continue to invest as per the current practice. However, existing investors are also urged to comply with the new KYC requirements including IPV as mandated by SEBI.
You may also note that CDSL Ventures Ltd. (CVL), which has been acting as the centralized agency for carrying out KYC for the mutual fund industry, has recently obtained SEBI registration as a KRA. In addition, the NSDL Database Management Limited (NDML) (wholly owned subsidiary of NSDL) has also received ‘in-principle’ approval from SEBI to act as a KYC Registration Agency (KRA).
In person Verification (IPV) & document verification:
- IPV/Document verification can be done by RTA and KYD certified distributors. The distributors (ARN holder) who are KYD compliant are authorised to conduct KYC only of their "own clients". AMC’s employees (as authorised from time to time) also are now authorised to attest such documents.
- For Non Individuals – IPV to be done of beneficial owner.
- Intermediaries would be responsible for KYC done by them therefore due care should be taken while accepting the KYC documents.
- Intermediaries should send documents to KRA within 10 days.
- KRA to send confirmation to investors within 10 days of document receipt form Intermediary.
Electronic data of KYC shall be maintained by respective intermediaries, where the KYC is done For detailed process/guidelines on undertaking of KYC for new and existing investors, click here.
For Micro SIP Investors: In accordance with AMFI circular dated June 30, 2009 and final AMFI Guidelines received on July 14, 2009, on exemption of PAN for Systematic Investment Plans (SIP) where aggregate of installments in a rolling 12 month period or in a financial year i.e. April to March does not exceed upto Rs. 50,000 per year per investor, in case of any micro schemes such as SIPs upto Rs. 50,000 per year per investor, investors residing in the state of Sikkim, UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India, transactions undertaken on behalf of Central/State Government and by officials appointed by Courts shall be exempted from the requirement of PAN.
However, new investors will also have to fill up the new KYC form along with the IPV requirements.
Mutual Funds shall accept any of other standard specified identification instruments like Voter ID card, Government/Defense ID card, Card of Reputed employer, Driving License, Passport, etc in lieu of PAN with effect from August 1, 2009.
In view of the above, Investors are requested to enclose copies of any of the said document(s) which shall be self attested and also attested by the ARN Holder.
Investor with PAN are not eligible for simplified KYC Procedure.
In accordance with AMFI circular dated June 30, 2009, on exemption of PAN for Systematic Investment Plans (SIP) upto Rs. 50,000 per year per investor, with effect from August 1, 2009;
- Investors (including joint holders) must submit a photocopy of any one of the documents identified mentioned above along with Micro SIP applications.
- Supporting document must be current and valid.
- Supporting document copy shall be self attested by the investor.
- While making subsequent Micro SIP applications with a mutual fund, investor can quote the existing folio number where a Micro SIP has been registered and therefore need not resubmit the supporting document.
To download KYC Form, click on the following link-
KYC Form for Individual
KYC Form for Non - Individual