AMFI has issued new best practices circular to issue uniform guidelines on tagging of T30/B30 transactions.
The new norms say that transaction with missing or invalid PIN are considered as T30 transaction from April 1, 2019. In fact, AMFI has asked AMCs and R&T agents to review the PIN codes captured against your clients folio and take immediate steps to remediate it if they find missing PIN code or city name through KYC change form.
Distributors have to ensure that the PIN codes given in MF folios match PIN codes in KYC form to get B30 incentives.
This has come after SEBI found irregularities in tagging of B30 transactions. In fact, SEBI had advised AMFI that the MF industry should follow a uniform process for identifying and tagging T30 and B30 transactions based strictly on investor PIN code to ensure accuracy and uniformity in identifying the B30 transaction across fund houses.
AMFI has asked fund houses to follow the circular in letter and spirit.
Here are the key highlights of the new guidelines
- PIN codes mentioned in KYC form will be considered for tagging of B30/T30 transactions
- R&T agents have to use the city-wise PIN code file for top 200 cities provided by AMFI to tag all transactions and for generating the report on AUM by geography
- All NRI transactions will be considered as T30 transactions
- Folios where country name is other than India are T30
- If PIN code does not match PIN codes of T30 cities – AMCs and R&Ts have to look for city name to tag transaction. If city name is not available, R&T agents can tag it as B30 transactions
- If PIN code and city name is invalid or not available, it is T30 transaction. However, if city name is available and falls under B30 cities, it can be considered as B30.
- AMCs and RTAs can recommend AMFI to revise T30/B30 list. However, they cannot make changes on their own.
