With a view to make on boarding process easier during nationwide lockdown, SEBI has relaxed KYC norms in mutual funds, PMS and AIF.
With this, the market regulator has done with requirement of physical in person verification (IPV) and video in person verification (VIPV) if investors undergo KYC using Aadhaar based authentication or he submits necessary documents through the government backed app ‘digilocker’ or any other authentic source which enables online verification service.
However, SEBI clarified that there is no relaxation on documents. That means, investors will have continue to submit PAN, proof of identity and cancelled cheque. Instead of submitting self-attested copies of these documents along with wet signature, investors can submit it digitally through digilocker or eSign scanned copies.
In addition, SEBI has allowed all registered intermediaries like fund houses, PMS players, AIF players and RIAs to offer app based video KYC facility to onboard new clients digitally. These intermediaries will have to ensure that they are ready with necessary infrastructure to verify KYC documents online and facilitate video in person verification.
