What happens if an IFA does not get his KYD done by the February deadline? Will he continue to get his trail on the business already done by him?
- Hasan Wangde, ARN 23355, Navi Mumbai
Hi Hasan,
As per AMFI circular, compliance with KYD norms is mandatory. If you do not submit the necessary documents to CAMs or AMFI by end-February 2011, the brokerage can be withheld even for the existing business done by you. New ARN registrations have to comply with this rule from September 2010 onwards. KYD is a onetime process, so please complete this procedure in order to prevent any unnecessary hassles which may arise in the future. KYD is in the interest of the industry.