In a partial modification, CAMS has clarified that fund houses serviced by the registrar will continue to honour both financial and non-financial transaction in mutual funds if the KYC status is ‘in progress’.
However, the registrar said that investors with KYC status of incomplete, on hold or failed can not execute any financial transaction and make non-financial request in CAMS serviced fund house.
Investors will now have to get status of ‘KYC Verified’ or ‘KYC In Progress’ to execute financial transactions like fresh purchase, redemption and so on and place non-financial requests like change in bank, address or name.
You clients can get status of KYC ‘in progress’ by submitting updated KYC form along with supporting documents to CAMS.
In a note sent to Cafemutual, CAMS has clarified that the registrar will withhold redemption request of investors even if their FMPs have matured but their KYC is incomplete. In addition, you cannot open zero folio account in CAMS serviced fund houses until KYC of your clients is completed or it is in progress. In addition, there will be no switch transactions if KYC of your clients is incomplete.
