AMFI has approached the Ministry of Finance to seek an extension of deadline to upload KYC data on the central KYC Registry (CKYCR) platform, said two sources familiar with the development.
In November, 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.
However, fund houses are finding it difficult to upload the KYC data on this platform for existing investors before this deadline. Hence, AMFI has approached the ministry to give some more time to comply with the regulations.
“We have requested for the extension of at least 1 year to comply with the new KYC norms. We are hopeful that the ministry will consider this request. Other financial services industry like banking and insurance have also requested for the extension,” said a CEO of a private sector fund house.
Currently, fund houses are uploading KYC data on incremental basis i.e. details of new investors as per the new KYC norms.
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, 2017.
The government’s ambitious central KYC (CKYC) has gone live from July 15 in a phased manner. This paves way for a single KYC which will suffice to invest in all financial products, including mutual funds.
