This is to update you on the requirements of Prevention of Money Laundering Act, 2002, and the subsequent guidelines issued by the Securities and Exchange Board of India ("SEBI") and Association of Mutual Funds in India ("AMFI") to ensure compliance with the same. As per the law all mutual Funds are required to verify identity and maintain records of all their investors through the mandated Know Your Customer ("KYC") process with effect from February 01, 2008.

Effective February 1, 2008 for any investment in mutual funds (which includes fresh /additional purchases and new SIP registrations) of Rs.50, 000/- or more, KYC must be completed for all unitholders (including NRIs and Person of Indian Origin) / investors in a folio (including guardian where the investor is a minor) irrespective of the mode of holding, and any Power of Attorney holders.

Investments where KYC is not completed will be liable for rejection by the Mutual Fund effective 1st February 2008.

As the Anti money laundering laws are mandatory and require urgent action, we request you to comply with the KYC norms in order to continue investing in your mutual fund account with us.

KYC stands for “Know your Client”, the term 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, financial status, occupation and such other personal information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund

Individual investors will have to produce Identity Proof (Photo PAN card copy or PAN card copy and copy of the passport, driving license etc) and Proof of Address (any valid documents listed in section B of the KYC Application Form for Individuals). 

Non – Individual Investors will have to produce certain documents pertaining to its constitution/registration to fulfill the KYC process. A list of Mandatory Certified Documents to be submitted can be found in section C of the KYC application form for Non-Individual Investors

The Association of Mutual Funds of India (AMFI) has facilitated a centralized platform through CDSL Ventures Limited ("CDSL"), a wholly owned subsidiary of Central Depository Services (India) Limited, to carry out the KYC procedure on behalf of all Mutual Funds. CVL through its Points of Service (POS) will accept KYC Application Forms, verify documents and provide the KYC Acknowledgement (across the counter on a best effort basis). The list of PoS will be displayed on the websites of Mutual Funds, CDSL and AMFI. Once the KYC is duly completed in all regards, the investor needs to produce a copy of the acknowledgement when investing for the first time with a Mutual Fund. There is no need to repeat the KYC process individually for each mutual fund

There is separate KYC Application Form for Individual and Non-Individual Investors. These forms are available on the website of mutual funds, AMFI and Central Depository Services (India) Limited (CDSL). You may also approach your distributor for a form. It is important to read the instructions printed on the KYC Application Form while filling-up the form.

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 complete the KYC process and obtain the KYC Acknowledgement through any of the PoS.

With effect from 01 February 2008, any investor investing Rs. 50,000 and above would be required to complete the KYC process.

Currently, all investors (Individuals or Non Individuals) who wish to make an investment of Rs. 50,000 or above in a mutual fund scheme will be required to complete the KYC process. This would also apply to new Systematic Investment Plan (SIP) registrations on or after 01 February 2008, if each SIP installment is of value greater than or equal to Rs.50000. Please find the list of personnel who are required to be KYC compliant: 

Joint Holders: Joint holders (including first, second and third if any, are required) to be individually KYC compliant before they can invest with any Mutual Fund. e.g. in case of three joint holders, all holders need to be KYC compliant and copies of each holder's KYC Acknowledgement must be attached to the investment application form with any Mutual Fund.

Minors: In case of investments in respect of a Minor, the Guardian should be KYC compliant and attach their KYC Acknowledgement while investing in the name of the minor. The Minor,upon attaining majority, should immediately apply for KYC compliance in his/her own capacityand intimate the concerned Mutual Fund(s), in order to be able to transact furtherin his/her own capacity.

Power of Attorney (PoA) Holder: Investors desirous of investing through a PoA must note that the KYC compliance requirements are mandatory for both the PoA issuer (i.e. Investor) and the Attorney (i.e. the holder of PoA), both of whom should be KYC compliant in their independent capacity and attach their respective KYC Acknowledgements while investing.

For transmission (IN case of death of the unite holder): If the deceased is the sole applicant, the claimant should submit his/her KYC Acknowledgement in the request along with the other relevant documents to effect the transmission in his/her favour

If investors invest more than Rs.50000 in a mutual fund for the first time, they have to attach their KYC Acknowledgement along with the Investment Application Form(s) / Transaction Slip(s). Applications Forms / Transaction Slips not accompanied by KYC Acknowledgement are liable to be rejected by the Mutual Fund. If you do not obtain a KYC Acknowledgement, you will not be able to invest Rs. 50,000 or more in a mutual fund.

KYC norms are applicable to all investors. It is in the interest of all Investors to obtain KYC Acknowledgement and submit it to the Mutual Fund to avoid any inconvenience in future.

Investors must attach their KYC Acknowledgement along with the Investment Application Form(s) / Transaction Slip(s) while investing for the first time in a Mutual Fund

In the event of any KYC Application Form being found deficient for lack of information / insufficiency of mandatory documentation, further investments of Rs 50,000 or more will not be permitted.

No. Once the KYC Acknowledgement is obtained and informed to a Mutual Fund, it will be registered against the folio and quoted in all future account statements. The same will exist in perpetuity, unless cancelled by CVL.

You can inform the Mutual Fund to update the KYC Acknowledgement against all the folios/accounts you have with it. However, each of the holders in these folios/accounts should be KYC Compliant.

The soft copy of these KYC forms are available on the website of all mutual funds, AMFI and Central Depository Services (India) Limited (CDSL). You may also approach your distributor for a form. The same duly completed along with the necessary attested documents can be submitted at the PoS or mailed to your representative or Distributor who can complete the KYC formalities for you.

Yes. In addition to the certified true copy of the passport, certified true copy of the overseas address and permanent address will also be required. If any of the documents (including attestations/ certifications) towards proof of identity or address is in a foreign language, they have to be translated to English for submission. The documents can be attested, by the Consulate office or overseas branches of scheduled commercial banks registered in India.

The requirements applicable to an NRI will also apply to a PIO. However, additionally, he will need to submit a certified true copy of the PIO Card.

You should intimate your change of Name/Address/Status/Signature etc to any convenient PoS. You need to quote your PAN and submit proof (in case of new address). You should provide for at least 10 days for the change of address to take effect with all the Mutual Funds with whom you are invested. Please note that you should not write to the Mutual Fund or its Registrar for the change of address (unless as a designated PoS). The specified form can be obtained from the AMFI/Mutual Fund/CDSL website. All details of the holders in the Mutual Fund records will be replaced by the address details available in the CVL record.

Upon a Minor attaining the age of majority (i.e. on completing 18 years of age), he/she must be KYC Compliant and have KYC Acknowledgement of their own. The same should be informed to the Mutual Fund where he/she holds an investment, along with other details such as the Bank Details, Signature, etc as per the present requirements of such Mutual Fund.

The requirement of providing your PAN along with proof is sufficient for proof of identity. However, the current requirement for KYC requires the mutual fund to verify identity, address as well as obtain further information about the investor.

As per PMLA, it is mandatory for Mutual Funds to obtain financial status details from its investors. It is for this reason that the Income details are sought. Please note that no proof / income documents are required. The information given by you in the KYC Application form will be treated in a confidential manner and used for regulatory purposes if called for

Yes. If you find an increased/decrease in your income, which would effectively, changed the income bracket that you have declared in the KYC Application form, you should apply to any convenient PoS in the specified form. No proof is needed.

Redemption request is given to the investor service centre while the change of address (if KYC process has been previously completed) has to be given to a PoS. The change of address will be effected by CVL and informed to the Mutual Funds. As it will take 10 days for this process to be completed, the redemption transaction accompanied by a change of address request is likely to be processed without effecting the change of address request.

Once investor receives KYC Acknowledgement, it will be required to intimate all the  Mutual Funds about him being KYC Compliant with whom it has investments by quoting the folio number. The same will be updated in the records of the Mutual Fund.