KYC COMPLIANCE IS NOW
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,
Applicability of KYC
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 unit holders
(including NRI's 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
Completing KYC and PAN formalities is simple
All mutual funds have appointed CDSL Ventures Ltd ("CVL") to
help investors to complete KYC formalities on their behalf. The investors
need to submit their details only once for completion of KYC formalities
across all mutual funds.
The flow chart given below illustrates the process of completion of KYC:
Documents required to complete KYC:
All you need to do is complete the KYC form and submit along
with the following documents at any of the designated 'Point of Service'
(POS) of CVL.
1. A recent passport-size photograph
2. Copy of PAN card and
3. Proof of address for Individuals,
4. or Corporate Documents for bodies corporate,
Please note that these documents needs to be:
1. submitted in original along with a self-attested copies,
where the original will be returned across the counter after verification.
2. duly attested by a manager of a scheduled commercial bank (the
designation seal should be affixed), notary public or gazetted officer.
You must remember:
1. On submission of the KYC application form and documents to
CVL, you will receive an acknowledgement across the counter, a copy of
which must be submitted to us as proof of having completed KYC
2. If you have already completed KYC formalities through CVL and obtained
a KYC acknowledgement, please submit a copy of the same to us along with a
list of folio number(s). After due verification, folio(s) will be updated
in our records and you can continue to transact with us as before.
PAN IS NOW MANDATORY FOR
TRANSACTIONS IN MUTUAL FUNDS.
This is to update you on the requirements of Prevention of Money
Laundering Act, 2002 and the subsequent notifications dated 27 April, 2007
and 25 June, 2007 issued by SEBI which made Permanent Account Number (PAN)
as the sole identification number for all participants transacting in the
securities market (which includes Mutual Funds) with effect from 2 July,
To ensure compliance with the requirements mandated by SEBI, it is now
mandatory for all investors (including NRIs) to submit a copy of the PAN
card while making a new / additional purchase transactions (including SIPs)
of any amount. In absence of the above, such transactions will be liable
for rejection by the mutual fund with effect from Jan 01, 2008.
Applicability of the new guidelines:
Only PAN card copy is accepted as PAN proof, effective January 1, 2008. No
document would be accepted in lieu of the PAN. Thus form 49A / 60 or
evidence of PAN other than a PAN card will not be accepted.
Submission of PAN card copy is mandatory for all existing as well as
prospective investors (including joint applicants / holders, guardians and
NRIs) for investing with Mutual Funds from January 1, 2008.
Existing investors who had earlier provided Form 49A or copy of
application for issue of duplicate PAN card must submit a copy of their
PAN card to us immediately, to continue transacting with us.
Verification of PAN Proof:
Investors are required to submit a copy of their PAN card.
Please note that the PAN copy needs to be attested by any of the following
a. At the Mutual Fund office (verification with original to be done by the
person accepting the documents)
b. Your Financial Advisor
c. Your Bank Manager
d. Gazetted Officer
e. Notarized Copy
f. Judicial Authority
As mandated by the regulation, PAN details need to be verified from the
Income Tax database by our Registrars.