MF News Pan Card and Aadhaar sufficient for MF investments: SEBI

Pan Card and Aadhaar sufficient for MF investments: SEBI

SEBI has requested the government to allow them to accept Pan Card and Aadhaar for KYC verification in mutual funds.

Nishant Patnaik Dec 20, 2017

Very soon, Pan Card and Aadhaar will be sufficient to invest in mutual funds. In fact, SEBI has requested the government to consider allowing them to accept Pan Card and Aadhaar for KYC verification, said Ajay Tyagi, Chairman SEBI.

Tyagi was answering to the request of Leo Puri, MD, UTI Mutual Fund on simplification of KYC across financial products at the eighth CII Financial Markets Summit held today in Mumbai.

Tyagi said that centralization of KYC is important for the growth of mutual funds. He said that SEBI wants simplified KYC. “We believe Pan Card and Aadhaar are enough for KYC verification to invest in mutual funds. In fact, SEBI has approached Financial Stability and Development Council (FSDC) to allow accepting Pan Card and Aadhaar for KYC verification to invest in mutual funds,” he added.

Though the government has launched central KYC last year to do away with the requirement of doing multiple KYCs, it is expected to take time to get fully functional.

So far, Aadhaar is just one of the documents to carry out KYC. Currently, policyholders need PAN card, an address proof and a cancelled cheque to undergo KYC. Aadhaar card holders undergo In Person Verification (IPV) by submitting all these documents. Ideally, there is no need to do KYC and IPV again.

Typically, it takes 8 to 10 days to verify a KYC application. By going Aadhaar based KYC, fund officials say that KYC can be done on a real time basis.

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

‘Mid cap funds will continue to deliver healthy returns’

Your bulletin for the day

MFs increase exposure to private banks, capital goods and consumer goods

MF bulletin: The MF industry adds close to 7 lakh new investors in March

ICICI Prudential MF, SBI MF and HDFC MF are the biggest hybrid players

SBI MF, ICICI Prudential MF and HDFC MF: Top three in debt AUM

How to enhance your earnings?

Beware of this new fraud

Axis MF promotes R Sivakumar as the Head of Corporate Strategy

Raghav Iyengar quits Axis MF

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

7 Comments

Nagaprasad Kundapur · 6 years ago `

The process of CKYC is there already for MF investments. Now AMFI says, all present investors have to link Aadhaar Number through 4 entities like CAMS etc. I fully agree that it should be done, but when both documents are submitted along with CKYC form, why a duplication work has to be done causing lot of time loss. These 4 entities can always draw details from CKYCs submitted so far. For remaining MF investments they can inform the respective ARN holders to collect it & submit with in a time frame. It will reduce stress on genuine investors who have already submitted KYC and the ARN holders too. Actually the Corporate ARN holders like banks & other entities are responsible for the messup, who don't bother to adhere to the requirements submission.

Q D · 6 years ago `

Why link aadhaar at all? Your PAN is valid only if linked to aadhaar. So let the rTA check if the PAN is valid as they are doing now and everything is done. Why reinvent the wheel.

M n mahajan · 6 years ago

When aadhar is linked with pan card of m f investors, why all mac are again insisting to link aadhar cards.is it not possible for mac to collect data from I t departments.thanks

SATEJ C SANGAI · 6 years ago `

I think AMFI must develop a centralised system for updating aadhaar at CAMS, KARVY, FT, SUNDARAM at one time. Why Distributor or Investor will go to 4 different entities for updating the Aadhaar ?

Yvs suresh kumar · 6 years ago `

Too many complications and modifications confusing the investors. And for these things the IFA may has to visit the client's multiple times some cases, where he loose time and money which can not be immediately compensated. Top people should at least apply their logic to ease the process. Anyway upgradations should be always simple to the previous exercise. Any document is required, at the time of transaction like aithdrawal or investment should be demanded.

Yvs suresh kumar · 6 years ago `

Kersi Dadi Gandhi · 6 years ago `

I do agree, it is a great task for IFAs to collect different data from the clients. When PAN is linked with Aadhare then why again we have to approach the clients. It is waste of time, energy and money. Tomorrow if the govt comes up with a different identification no., then again an exerise has to be done. I think SEBI, AMFI AND RBI should sit and sort out the matter together.

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

AMCs can pay trail commission to the new distributor if investors initiate transfer of their assets. How will this impact you?

Help me get clients of other distributors who are underserved

Lead to poaching of clients

No significant effect on my business

EVENTS FORUMS