In line with the Ministry of Finance rules on prevention of money laundering, Aadhaar has been made mandatory for mutual fund investments with effect from January 1, 2018.
In an email communication, AMFI has said that no new folios can be opened from January 1, 2018 if Aadhaar is not provided at the time of making an investment in mutual funds.
AMFI has also directed fund houses to ensure linking of Aadhaar details with existing folios before December 31, 2017. AMFI has asked fund houses to freeze non-Aadhaar compliant accounts with effect from January 2018. This means, non-Aadhaar compliant investors cannot execute fresh mutual fund transactions.
Though fund houses can allow investors to invest in mutual funds without furnishing Aadhaar details at their discretion, they will have to update such details before December 31, 2017.
Earlier, the ministry had directed fund houses to link Aadhaar number with the mutual fund folios before December 31, 2017.
Investors can link their Aadhaar number with mutual fund folios through R&T agents such as CAMS and Karvy.
Here is how you can help your clients to link Aadhaar with MF folios.
- The RTAs have enabled online submission of Aadhaar and PAN details by investors on their websites for collection and authentication of Aadhaar number. You may advise your clients to provide such details at any of the RTA's websites.
- Physical forms will soon be available at all the investor service centres (ISCs) of the AMCs and RTAs.
- AMCs will send emails to distributors and investors with a weblink to update Aadhaar.
- Investors can send SMS from registered mobile number to link Aadhaar.
