The KYC (acronym for Know-Your-Customer) process has undergone substantial change over the years. This process, employed for customer identification, has gotten a bit more elaborate.
When implemented in 2008, it was only mandatory for investors investing Rs 50,000 or more.
Within 3 years (January 1, 2011), it was compulsory for all retail investors in mutual funds, irrespective of the amount being invested.
There’s a fresh development now. Investors who complied with the KYC norms before January 2012, need to update their details.
You now have to provide information in terms of marital status, your father and spouse’s name, gross annual income details and your net worth. That’s not all, the regulator, the Securities and Exchange Board of India (SEBI) has demanded an In-Person-Verification (IPV).
Investors need to take this seriously because fresh investments in mutual funds will not be permitted unless these steps are processed. So get in touch with your broker or distributor or asset management company (AMC) as soon as possible and fill in the “change form”.
Neither should the IPV stress you out.
Check with AMC if you can get it done with them.
Or else, with your distributor if he is KYD (acronym for Know-Your-Distributor) and even with selected scheduled commercial banks.
On a closing note do remember. If you don’t get compliant as per the new KYC norms by December 1, 2012, as far as your existing investments and folios go, you won’t be affected. But your future fresh investments will be halted.