Existing KYC compliant MF investors who wish to invest in schemes of an AMC where they have not invested so far will have to provide additional details including in-person verification (IPV) by 30th November.
SEBI, through its circular dated April 13, 2012 had asked AMCs to update KYC details of new investors by November 30, 2012.
Existing retail investors are not required to provide any additional information if they are already KYC compliant. However, if they want to invest in any other scheme of another AMC, they need to provide additional details like father’s/spouse name, marital status, nationality, annual income and in-person verification (IPV) details. Investors can update this information through a ‘KYC detail change form’ available on AMC’s websites.
“You cannot add any new investors if they are not compliant with new KYC norms. If you are an existing investor in any fund you can continue investing in the same fund house. However, if you plan to invest in any other mutual fund then you have to provide certain additional information,” said the operations head of a bank sponsored fund house.
Meanwhile, AMCs are informing their investors and intermediaries to do IPV before November 30, 2012.
Non-individual customers have to do their fresh KYC again. They are required to provide their balance sheets for the last two fnancial years, copy of latest share holding pattern, among other details. “Since the kind of information that is being sought from new non-individual investors is so elaborate, it is almost akin to doing new KYC,” says Y Jawahar, VP & head of distribution, Mata Securities.
On August 08, 2012, AMFI had requested SEBI to direct KYC Registration Agencies (KRAs) to implement inter-operability between all KRAs on an urgent basis. The letter states that AMCs were getting increasing number of complaints from investors as certain AMCs were not signed up with other KRAs with whom investors had done their KYC.
KRAs were set up to operationalize common KYC process which came into effect from 01 January, 2012.
