Many fund houses have launched the new KYC form to change status from minor to major.
Earlier, SEBI asked fund houses not to allow transactions i.e. accepting fresh money or honouring redemption when minor turns major but does not submit KYC details.
With this, the industry has come up with uniform policy to deal with minor to major accounts.
Parents or guardians can invest in mutual funds on behalf of their children through a minor account. Since children do not have income and mandatory documents like PAN, Aadhaar and bank account, AMFI rules allow parents to invest in mutual fund through their KYC details.
Now, when a minor becomes a major on attaining 18 years of age, she has to complete the KYC process in her own capacity and notify the concerned mutual funds by filling up a prescribed ‘minor attaining majority form’ in order to be able to transact further in her folios.
Such investors will have to submit documents like self-attested copy of PAN, birth certification or Aadhaar Card, address proof and bank details along with cancelled cheque.
An attested copy of bank passbook or bank statement by the bank branch manager with seal and employee code has to be attached along with the form.
