AMFI has asked R&Ts and AMCs to consolidate folios based on matching PAN with investor names to smoothen consolidated account statement (CAS) issuance process by February 29, 2012.
AMFI has asked registrar and transfer agents to consolidate their investor database by February 29 based on permanent account number so that more investors start receiving consolidated account statements (CAS).
In order to issue consolidated statements, R&Ts were identifying folios based on PAN and the exact match of investor names under various folios of that particular PAN. However AMFI has observed that many investors have provided different names, sometimes their full names and sometimes only initials or surname. Thus a large number of investors got excluded from getting CAS which resulted in duplication of costs.
AMFI has now instructed R&Ts to drop the validating folios on the basis of exact name match for statements to be dispatched from March 2012. AMFI has also directed R&Ts to send CAS electronically to valid email ids from May onwards.
“AMCs and their RTAs are requested to complete the review and validation of PANs and the names captured in their folios and make corrections, where ever necessary. This exercise needs to be completed latest by February 29, 2012 as folio consolidation for February 2012 transactions and onwards will be based on PAN only,” states the AMFI circular.
AMFI has also urged fund houses to ask investors to provide their email ids in all their communications. CAS is issued every month if there are any transactions done by investors.
As per SEBI data, there are currently 4.71 crore investor accounts as on January 2012. Investors tend to hold multiple folios across all fund houses.
