With AMFI’s latest decision to make PAN mandatory for mutual funds redemption, distributors are required to update PAN details of their existing clients.
As on May 31, 2019, the mutual fund industry has 99 lakh folios without PAN. The number includes PAN exempted folios but such folios are not substantial.
Here is how distributors can remediate non-PAN folios.
Both CAMS and Karvy Fintech have introduced an online facility to help distributors and investors upload PAN online.
On CAMS, investors or their distributors will need to key in details such as name of fund house, folio number and date of birth of investors or bank details to update their PAN. Once they key in either of these details, they need to upload a self-attested copy of PAN to complete the process.
In case of minor folio, investors should upload self attested PAN card copy of guardian. For validation, investors should enter details of first holder date of birth (minor) or default bank account number. Similarly, HUF and non-individual investors should upload self attested PAN card copy of Karta and company, respectively. Remember that the image file should not exceed 1MB and it should be in pdf/tif/png/tiff/jpg/jpeg format.
Once investors update their PAN, the R&T agent will verify credentials and signature with their records. On successful verification, CAMS will send an acknowledgment to investors.
For Karvy Fintech serviced fund houses, you will need to key in AMC name, folio number, investor name and PAN number of your clients. Once you key in these details, your client will be required to upload a scanned copy of self-attested PAN card. Karvy Fintech will verify the authenticity of the PAN by matching signature.
In case of joint accounts, all investors registered in a folio will have to upload their PAN separately.
Ravikumar Somasi, General Manager, Karvy Fintech said that there will be no one time password authentication to remediate non-PAN folios, as most of them were created several years ago. “We have kept things simple. A self-attested copy of PAN ensures that investor has authenticated it on his own and we will anyway validate PAN and match the signature before remediating a non-PAN folio.”
Currently, both CAMS and Karvy Fintech offer mailback reports to get status on PAN update of your clients. Distributors can download a list of folios where PAN is not available. This will help you get information on folios where you need to work.
