While making investment in securities, investors are required to fulfil the KYC formalities. The KYC should be kept updated all the time. ‘Know Your Customer’ involves submission of form with address proof, identity proof, photographs and PAN etc. Similarly, any change in such vital information should be intimated immediately.
Due to change in name, address or residency status, KYC should be updated. The prescribed procedure must be followed. The RBI has made it mandatory that KYC with latest information should be done to get all personal information correctly reflected.
The form and documents to be used: ‘KYC details change’ form must be filled. This is available from the website of mutual funds and also from RTAs (Registrar and transfer agents) like CAMS and K-Fin.
The field which needs to be changed must be selected. It could be new identity details in case of change of name/PAN/residential status/marital status/nationality or contact details such change of correspondence address/ phone numbers or email id.
Depending upon the change, the proof regarding the same must be submitted. The form along with the proof are checked by the authorised person. Original documents and self-attested copies should be submitted. List of other acceptable documents are given in the instructions page of the document. When the address is changed, self-attested copies of passports, electricity bills, ration card, latest bank statement will suffice. Attested copies by competent authorities are also accepted.
In case of legally one changes his/her name, it needs to be updated. The name on PAN card, Aadhar card, and latest passport should be different. Thus, with any of these latest documents KYC requires updation.
The form should be submitted to one of the mutual fund offices or RTAs. This procedure is carried out to ensure that the document has not been tampered with in any manner. Digital tampering via photoshop and the like is common and fake documents may go unnoticed. Hence the scrutiny for KYC updation is made methodical to prevent malpractices.
KYC can not be changed online except when it is changed for the first time. Details of the change and relevant documents should be uploaded on the website of the mutual fund. To ensure that the person is alive and is real, this process is followed by a video call for an in-person verification. In order to update KYC, only offline process is to be followed and the updation becomes effective within 7-10 days after the submission of the form.
It is important to note that once when an updation of KYC takes place with a mutual fund or with an RTA, it shall be reflected with all other mutual fund houses or RTS.
KYC in banks and De-mat accounts do not get affected by the change in KYC for mutual fund purposes.
KYC records are maintained by SEBI registered entities known as KYC registration agencies KRA. The KYC compliance is mandatory for investments in the financial markets. To make any investment with mutual fund house, the investors must be KYC compliant. KYC itself is a standardised way to check the authenticity of customers on a portal by the Indian government. The goal is to potentially catch money laundering activities on any platforms. RBI has made it mandatory for most portals and bank websites be it mutual fund investments or any other. In case of e-KYC , the maximum amount that can be invested(OTP based) per annum, per mutual fund is restricted to Rs.50,000.
Smrutirekha Bhoi