You may have experienced a situation where you have tried to link Aadhaar details of your clients with their mutual fund folios but it does not happen successfully on the system of registrar and transfer agents (R&T agents).
This is because the government has instructed R&T agents to link Aadhaar with mutual fund folios only if the details as appearing on Pan, Aadhaar and mutual fund folio match completely (100%). Earlier, R&T agents were allowed to link Aaddhaar details with mutual fund folios if the details of all three documents match to some extent i.e. 65%, confirmed two R&T officials.
“Now our system does not carry out the Aadhaar linking process with the mutual fund folios if there is a mismatch in the documents. Hence, advisors will have to first ensure that all three documents of their clients match,” said one of the R&T officials referred above.
While your clients can update Pan and Aadhaar online, they will have to undergo central KYC to make changes to the mutual fund folios.
You can help your clients link their Aadhaar number with mutual fund folios through R&T agents such as CAMS, Karvy, Sundaram BNP Paribas Fund Services and Franklin Templeton.
Earlier, the government has instructed fund houses to ensure linking of Aadhaar details with existing folios before March 31, 2018. Following this, AMFI has asked fund houses to freeze non-Aadhaar compliant accounts with effect from April 2018. This means, non-Aadhaar compliant investors cannot execute fresh mutual fund transactions.