NRI CKYC for Mutual Fund Investment

NRI’s CKYC guide to Mutual Funds while investing in India.

1] What is NRI CKYC?

Ans: KYC is an acronym for ‘Know your Client’, a term commonly used for Client 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 would be in the form of verification of identity and address, providing financial status, occupation and such other demographic information to CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. (CDSL). Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.

W.e.f. January 1, 2011, all categories of investors irrespective of amount of investment in Mutual Funds are required to comply with KYC norms under the Prevention of Money Laundering Act 2002 (PMLA) for carrying out the transactions such as new/ additional purchase, switch transactions, new SIP/ STP/ DTP registrations received from effective date i.e. January 1, 2011.

2] Does the NRI investor have to repeat the KYC process with every Mutual Fund?

Ans: Once the KYC is duly completed in all respects, the investor needs to produce a copy of the Acknowledgement to the fund where the investor desires to invest. There is no need to repeat the KYC individually for each Mutual Fund investment.

3] Where and how does NRI get to be KYC compliant?

Ans: The Mutual Fund industry has appointed CDSL Ventures Limited (CDSL), a wholly owned subsidiary of Central Depository Services (India) Limited, to carry out the KYC compliance procedure. CVL through its Points of Service (POS) will accept KYC application forms, verify documents and provide the KYC Acknowledgement (across the counter on the best effort basis)

4] Should the NRI investor visit POS personally to obtain KYC compliance?

Ans: No. If the investor is not in a position to visit POS personally, the KYC application form along with the necessary documents (including originals if the copies are not attested) can be sent through the distributor or representative, who can arrange to fulfill the KYC obligation and obtain the KYC Acknowledgement through any of the POS.

5] Which supporting documents required investing in Mutual Funds and KYC?

A: If you are an Indian citizen (holding an Indian passport): Require following self-attested copy of

  • Permanent Account Number (PAN) card : 2 copy
  • KYC verification form with colour passport size photograph.
  • cancelled cheque leaf, or a recent account statement from your NRE/NRO account that is held with an Indian bank: – 2 copies
  • Foreign Address Proof–utility bill (phone/electricity), driving license with address, etc.: 2 copies.
  • Indian address proof – utility bill (phone/electricity), driving license with address, aadhar card, bank statement etc: – 2 copies.
  • Passport:- 2 copies
  • Tax File No, Citizenship Card No or green card no,: 2 copies.

B: If you are a foreign citizen (holding a foreign passport):

  • If you hold a PIO or OCI card, we will need, in addition to the documents above:
    – A photocopy of the foreign passport that has been attested by your local Indian embassy (in lieu of the Indian passport above)
    – A self-attested copy of your PIO or OCI card
  • We’ll also need the following supporting documents from you to get you Know Your Client (KYC) compliant (it is mandatory to be KYC-compliant to invest in mutual funds in India):
    – KYC form – duly filled and signed.
    – Recent color photo (signed across the photo)
    – Copy of PAN card, notarised (on an A4 size paper)
    – Copy of exact proof of overseas address, notarised (on an A4 size paper)
    – Copy of first and last pages of passport, notarised (if you are an Indian citizen)
    – Copy of foreign passport, notarised (if you are a foreign citizen)
    – Copy of PIO or OCI card, notarised (if you are a foreign citizen)

6] Will NRIs also be able to avail of the home pick-up facility in case of mutual funds?

Yes. The home pick-up facility is available for NRI in Pune & Mumbai*.