Complying with the Know Your Customer or KYC norms is mandatory for every mutual fund’s investor. It is important for an investor to submit their identity details to the mutual fund houses. AMC’s are required to formulate rules and implement a customer identification program in accordance with the Prevention of Money laundering Act, 2002 (PMLA). These rules and regulation gets updated and is issued by SEBI from time to time. The KYC process is free for the investors.
What are all documents required?
Firstly, you need to get a KYC form which you can download from the various website. You can also ask for the form from a broker or an agent if you are dealing with any of them. After filling up the form, you need to provide self-attested copies of the following documents along with it you need to carry originals for In-person verification.
=> Proof of identity
=> Proof of Address
=> PAN Card
=> Aadhaar Card, if required
Where should you submit the form?
You can submit the duly filled form at the following juncture:
=> AMC (Asset Management Company) with which you are making an investment
=> RTA (Registered Transfer Agent) such as CAMS, Karvy, or Sundaram BNP Paribas Fund Services and Franklin Templeton.
It is important to note that each investor has to undergo a uniform KYC process only once in the securities market.
What happens if one gets their eKYC done?
Once you are done with eKYC, you will be able to purchase units in any of the participating mutual funds at the respective AMC (Asset Management Company) or RTA (Registrar & Transfer Agents).
The eKYC is done through your Aadhaar number which is then further matched with your PAN number for cross verification. If any of the documents are missing the RTA or AMC can ask you further for more documents. You should know that through eKYC, your investment gets restrict to Rs 50,000 per annum per Mutual Fund for OTP-based eKYC.
However, if you want to increase the limit you need to go through proper KYC process as discussed above, where you have to submit the physical form with your signature’s done on it. You may be required to present yourself for an In-Person Verification or Biometric based authentication if you are going through the online process and further want to increase the amount of investment.