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New KYC norms
November 23, 2012

Investors need to take heed of the fresh KYC norms to facilitate future investments

Author : iFAST Content Team

 New KYC norms

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.

Disclaimer: iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual funds of any of the Asset Management Company mentioned or referred to in the article, and may from time to time add or dispose of, or be materially interested in any such. This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any mutual fund. No investment decision should be taken without first viewing a mutual fund's scheme information document including statement of additional information. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Investors should seek for professional investment, tax, and legal advice before making an investment or any other decision. Past performance and any forecast is not necessarily indicative of the future or likely performance of the mutual fund. The value of mutual funds and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer on the website.Please read our disclaimer in the website. Risk Factors: Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme. The name of the Scheme does not in any manner indicate the quality of the Scheme, its future prospects or returns. Please read the Statement of Additional Information and Scheme Information Document carefully before investing.

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