Your clients can no longer execute any financial transaction and make non-financial request in CAMS serviced fund house from Monday if their KYC status is incomplete or pending.
CAMS has clarified that only investors who complete the KYC would be allowed to invest in mutual funds. Investors will have to get status of ‘KYC Verified’ to execute financial transactions like fresh purchase, redemption and so on and place non-financial requests like change in bank, address or name.
The practice of submitting KYC form along with the mutual fund application form will continue for first time investors. These investors will have to submit KYC documents along with the application form to invest in mutual funds. CAMS will consider their KYC as ‘in process’. In case their KYC gets rejected after allocation of units, they will have to send a separate form indicating folio no. and complete the KYC to do fresh transaction or redeem their units.
Your clients can also submit standalone KYC form and indicate their intention to invest in a specific fund serviced by CAMS. If they do not mention the name of CAMS serviced fund, the registrar will cancel such a request.
SIP investors will have to comply with the KYC norms by March 15, 2020. CAMS serviced AMCs will not honour SIP transaction after the stipulated date if KYC is not verified. If your clients are not KYC complaint, you can ask them to send KYC details through a standalone KYC form along with the folio number of the scheme.
In case your clients has invested in FMP and maturity date is due shortly, ensure that they complete their KYC to get redemption proceeds.
In joint accounts, all unit holders will have to complete their KYC details, clarified the registrar.
