AMFI CEO C VR Rajendran said that the mutual fund industry will upload KYC data of new investors on an incremental basis.
AMFI will approach SEBI to seek an extension of deadline to upload KYC data on the central KYC Registry (CKYCR) platform, said C VR Rajendran, CEO, AMFI.
Last month, SEBI had asked fund houses and Registered Investment Advisers (RIAs) to upload the KYC data of all individual accounts opened on or after August 1, 2016 by March 31, 2017 on CKYCR platform. SEBI has drawn a timeline for AMCs to upload these documents. According to this timeline, AMCs have to ensure 30% completion of uploading existing KYC documents by November 30, 2016, another 30% by January 31, 2017 and the remaining 40% by March 31, 2017.
Rajendran told Cafemutual that fund houses can upload KYC data on incremental basis i.e. details of new investors as per the new KYC norms. However, fund houses are finding it difficult to upload the KYC data on this platform for existing investors before this deadline. Hence, AMFI is planning to request SEBI to give some more time to comply with the regulations, he added.
The government’s ambitious central KYC (CKYC) has gone live from July 15 in a phased manner. This paves way for a single bank KYC which will suffice to invest in all financial products, including mutual funds. This was announced in the Union Budget 2012-13.
This new KYC captures additional details like mother’s name and FATCA details which is residence for tax purposes in jurisdiction outside India. Further, the new form captures complete KYC details of major in case minor is undergoing KYC due to which fund houses are finding it difficult to get it updated before March 31, 2016.
A month back, all financial regulators - SEBI, PFRDA, RBI and IRDAI have issued circulars instructing their respective regulated entities to upload KYC data of their customers on the CKYCR platform.
Over a period of time, all investor data will be stored at a single place which can be accessed by all financial institutions to verify the KYC. All investors need to do is obtain a central KYC number from Central KYC Registry through the financial institutions and use it to invest in any financial product. There will be no need to do multiple KYC.
