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MF News AMFI asks R&T agents to take investors consent before linking Aadhaar to MF folios

AMFI asks R&T agents to take investors consent before linking Aadhaar to MF folios

AMFI will release a guidance note for R&T agents soon.
Nishant Patnaik Sep 5, 2017

AMFI has asked registrar and transfer (R&T) agents to obtain consent of investors to access their Aadhaar data from UIDAI platform, said two sources familiar with the development.

This has come in the wake of Supreme Court’s order on Right to Privacy.

AMFI has been working on the guidance notice and is likely to issue it to R&T agents this week, said one of the sources.

Recently, the government has directed registrar and transfer agents of mutual funds to link Aadhaar number of mutual fund investors with their folios. The mutual fund investors will have to update their Aadhaar number before December 31, 2017. The government will freeze the non-compliant folios after this date.

R&T agents such as CAMS and Karvy have already launched Aadhaar linking facility on their websites for hassle free submission of Aadhaar details. However, they will have to wait to re-initiate this service.

A senior official from an R&T agency told Cafemutual that investors can either send a consent letter to R&T agents or give them an authority to access their information by submitting declaration through SMS or online platform.

Distributors will be required to help their investors link their Aadhaar number with their MF folios. In fact, a few distributors have started reaching out to their clients to make them aware of this development.

Ritesh Sheth of Tejas Consultancy Mumbai says that he is in a process to provide Aadhaar linking facility on his website. “I will provide back link of R&T agents through Application Program Interface (API) through which I can link this facility to my website,” he said.

In addition, both CAMS and Karvy have initiated awareness campaign on the need, urgency and importance of Aadhaar linking in mutual fund folios via online, call center, service center, help desks and social media platforms.

 

 

8 Comments
Lalit · 2 weeks ago
What would be status of NRI investors in relation to Aadhar link up..
This is one more hassle..
Already we gone through lot of trouble for KYC during last few years now one more..
Secondly WHY we need to link MF with AADHAR??
As per IT, now Aadhar is mandatory to be linked up with PAN ..
Is it not doubling of a exercise MF investors are KYC COMPLIANT with respect to there PAN, bank account, drivers licence, passort etc...where is AADHAR is already attached.
This exercise of linking AADHAR with nothing but one more hassle...
I request SEBI AND AMFI to look into this..
Amit Kishore chirimar · 2 weeks ago
I agree with Mr.Lalit above that linking aadhar to mf folio is duplicating exercise as linking aadhar to pan on income tax site is a must. Request AMFI & SEBI to look into this on priority and take immediate steps.
S V SETTY · 1 week ago
Since AADHAR IS MANDATORY FOR PAN both to be interlinked as per recent IT instructions.In existing KYC pan is already verified, it need not be additional man power utility to link aadhar for mf folios. PL LOOK IN IN DEPTH the connected authories.
Reply
Arvind Thakur · 2 weeks ago
It all is the tactic to diversified the focus of the regular to direct plans. Most customers wil feel panic and go directly to AMC's site and they will invite by AMC's to do direct business with them rather than agents distributors.
Sudhir Kulkarni · 2 weeks ago
The Cat Is Out of The Bag...!
Either it is MANDATORY OR YOU NEED INVESTORS CONSENT...!
The very Fact that they need investor's consent means it is an admission of the fact that it is not mandatory to link Aadhar with MF folios...!!! Its just govt's desire to have it linked...
Parminder Singh · 2 weeks ago
If it is mandatory to link AAdhar with MF, why you need investors consent?
what if investors says "NO"?
sandeep · 2 weeks ago
First Govt.& SeBI & AMFI must deside that what to Connect & whts left .All must ask in one go.
Do IFA are servent to GOVT.
Srinivas Pati · 2 weeks ago
If NRI does not have Aadhar then what about his folio?
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