Know Your Customer
To ensure compliance with the Prevention of Money Laundering Act, 2002, and SEBI and AMFI guidelines on the subject of AML (anti-money laundering), investors have to undergo KYC (Know Your Customer) formalities from CVL (CDSL Ventures Limited). Upon furnishing the required documents, CVL issues KYC Acknowledgement. The KYC formalities have to be completed for all mutual fund transactions, irrespective of the transaction amount. If the purchase / transaction application is not accompanied by KYC Acknowledgement, the same is liable to be rejected.
If you have already submitted the KYC Acknowledgement earlier, and if your KYC Status is showing OK on your Account Statement, you need not submit the KYC Acknowledgement again for that particular folio.
With a view to streamline implementation of KYC procedures and ensure compliance with the AML Regulations, the mutual fund industry has collectively put in place arrangement with an independent agency (currently CDSL Ventures Limited) that will act as a central record keeping agency (‘Central Agency’), and the Central Agency has the responsibility for collection of documents relating to identity and address of investors.
To ensure compliance, all you need to do is:
Fill in a KYC application form available at any AMC office or Point of Service (POS) location. Alternatively, you can also download the form from www.amfiindia.com or www.cdslindia.com or simply click on the links here.
- KYC form for individuals
- KYC updation form for Individuals
- KYC form for non-individuals
- KYC updation form for non-Individuals
- List of POS Locations
Submit the filled in KYC form along with a copy of your PAN Card, proof of residence and photograph. You can submit them with the originals or notarized copies (originals/notarized copies will be returned on verification) at the POS/select Mutual Fund Offices. Upon submission of KYC Form, the investor will be issued a KYC Acknowledgement in token of receipt. A copy of KYC Acknowledgement shall be attached by the investor/Unitholder to application for Purchase of Units.
This is a one-time, free of cost exercise to enable investors to comply with the KYC procedure across all Mutual Funds.
The list of documents to be submitted for the KYC procedure is given below:
- Proof of Identity
- Proof of Address
- PAN Card
- Photograph
The completed forms can be submitted at any of the locations given here.
Important
Please note:
- In case of joint applicants, KYC should be completed by all joint applicants.
- In case of applications under Power of attorney, KYC has to be completed by both the investor and the power of attorney holder.
- In case of NRIs/PIOs, they are required to complete KYC.
- In case of minor, the KYC should be completed by the Parent/Guardian signing on behalf of the Minor. However, in the event of such minor person becoming major, the KYC has to be completed on becoming major.
- In case of transmission, KYC has to be completed by the person claiming under such transmission.
- In case of nomination, KYC has to be completed by the Nominee before invoking the nomination.
- In case of lien/pledge etc., KYC has to be completed by the lien/pledge-holder.
Investors having Mutual Fund Identification number (MIN): Investors who submit their PAN, issued with a MIN, can attach copy of MIN letter with their application form, and they need not undergo KYC again.
Change of any particulars mentioned in KYC Form: Investors/Unit holders should note that in case of any change in future in any particulars furnished in KYC Form, they should notify such changes in writing to the POS, and NOT to the Registrar.
After issuing KYC Acknowledgement, the Central Agency may cancel the evidence of KYC Compliance within prescribed time period in case of any deficiency in the document/information. Intimation of such cancellation of KYC Compliance will be sent by the Central Agency to the investor. No separate communication will be sent to the investor if the KYC Form and documents submitted are found to be in order.
The Fund will normally validate the copy of KYC Acknowledgement received from the investors/Unitholder with the records of the Central Agency before allotting units. All applications without a valid KYC Acknowledgement can be rejected, or in case of having allotted the Units, the allotted Units can be compulsorily redeemed or transaction reversed.
With a view to ensure compliance with Anti Money Laundering Regulations, AMC has the right to scrutinize/verify the application/applicant and the source of the applicant’s funds and also reserves the right to redeem/reverse/cancel, in its sole discretion, the investment or redeem the investment proceeds in favor of the source account from which the monies had been invested, reporting the transaction/account to anti-money laundering authorities and/or taking such other action, that may be necessary under AML Regulations.
The Fund, Trustee, AMC or Registrar shall not be liable for any failure to perform its obligations or for any delay therein so as to complete verification of KYC compliance status of any investor.
The above provisions relating to prevention of money laundering and ‘Know Your Client’ may change from time to time as required by Regulations.
Please visit http://www.amfiindia.com/ for any other related information.
