Know Your Client (KYC) Form, Status, Regulations
Click below mentioned link to download KYC’s Respective Application Forms
You can know your KYC status :
What is the Regulation?
Securities and Exchange Board of India (SEBI) has issued guidelines under The Prevention of Money Laundering Act, 2002 (PMLA) which requires Mutual Funds to follow enhanced Know Your Customer (KYC) norms.
What is the Prevention of Money Laundering Act (PMLA)?
The Prevention of Money Laundering Act, 2002 (“PMLA”) created under the aegis of Financial Action Task Force (“FATF”) forms the core of the legal framework put in place by India to combat money laundering required to be followed by banking companies, financial institutions and intermediaries by administering KYC and other reporting requirements such as suspicious transactions reporting, etc.
What is KYC?
KYC is an acronym for “Know Your Customer”, a term commonly used for Customer Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including “Mutual Funds” to ‘know’ their clients. This entails In-Person Verification (IPV), verification of identity and address, financial status, occupation and such other personal information as may be prescribed by guidelines, rules and regulation.
Effective January 01, 2011, KYC has been made mandatory for all category of investors who wish to invest in the schemes of Mutual Fund irrespective of investment amount for all transactions.
To further clarify, the above category of investors shall include:
- their constituted Power of Attorney (PoA) holder, in case of investments through a PoA;
- each of the applicants, in case of investments in joint names; and
- Guardian in case of investments on behalf of minor.
If an individual becomes an Investor due to an operation of law, e.g., transmission of units upon death of an investor, the claimant / person(s) entering the Register of unit holders of the Fund will be required to be KYC compliant before such transfer can take place.
NEW KYC Norms (w.e.f January 01, 2012)
SEBI, based on feedback from investors, found that though certain basic requirements have been prescribed for Customer Due Diligence (CDD) or Know Your Client (KYC) for various SEBI registered intermediaries such as Mutual Funds, Portfolio Managers, Collective Investment Schemes and Venture Capital Funds, no specific KYC format had been prescribed. As a result, these intermediaries used different KYC formats and supporting documents. Thus, in order to bring uniformity in the Know Your Customer (KYC) process in the securities market and develop a mechanism for centralization of the KYC records and also to avoid duplication of KYC Process across the intermediaries in the securities market; SEBI vide Circular No. MIRSD/SE/Cir-21/2011 dated October 5, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011 introduced the concept of KYC Registration Agency (KRA) effective January 01, 2012.
What should the investor do?
Investors can submit the common KYC Application Form along with all necessary documents as prescribed in the KYC Application Form with any SEBI registered intermediaries including mutual funds. KRA shall send a letter to the investor within 10 working days of the receipt of the initial/updated KYC documents from the Mutual Fund, confirming the details thereof.
Apart from KYC, it is mandatory for intermediaries including mutual funds to carry out In-Person Verification (IPV) of all its new investors. The IPV carried out by any SEBI registered intermediary can be relied upon by the Mutual Fund. NISM/AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for Mutual Fund investors. Further, in case of any applications received directly (i.e. without being routed through the distributors) from the investors, the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.
Existing KYC compliant investors of 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.
Step 1 Download and Fill-up the revised KYC form (effective January 01, 2012)
For Individuals : (New) KYC Form
For Non-Individuals : (New) KYC Form
Step 2 Attach the following documents:
For Individuals and Non-Individuals:
Documents evidencing Proof of Identity and Proof of Address (List of requisite KYC documents for individuals and non-individuals are mentioned in the revised KYC Application Form)
Step 3 In-Person Verification (IPV):
Complete IPV from any of the following:
- Any SEBI registered intermediary.
- NISM/AMFI certified distributors who are KYD compliant
- Scheduled Commercial Banks (in case of any applications received directly)
Step 4 Submit the KYC form along with necessary documents at the nearest Investor Services centre or any other intermediaries of KRA’s as mandated by SEBI. Upon receipt and verification of the above documents, a KYC acknowledgement will be issued to each applicant.
- Investor(s) must note that KYC compliance is mandatory at the time of submission of each subscription request with the designated Official Points of Acceptance.
- Applications by investors without valid KYC are liable to be rejected.
- We strongly recommend all our Investors to be KYC Compliant by completing the KYC formalities, in accordance with applicable KYC rules in force from time to time, at the earliest so they can continue to invest with us smoothly.