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MF investors will not be able to invest in mutual funds through lumpsum or SIPs if their PAN become inoperative due to non-linking of PAN and Aadhaar, said two fund houses.
In fact, fund houses like DSP and Quantum have requested distributors and investors to link PAN and Aadhaar on or before March 31, 2022.
Please note that it is mandatory to link investor’s Aadhaar card to their PAN on or before March 31, 2022. If anyone fails to link their PAN and Aadhaar, their PAN will become inoperative and KYC status will get invalid. SEBI norms say that investors must have a valid PAN to invest in mutual funds.
In a communication, Quantum MF said, “It’s not just investor’s mutual fund investment that will come to a halt but if investors fail to link your PAN and Aadhaar, most of their investment-related activities will be stopped. Fresh investments or redemptions will be prohibited. The previous and ongoing systematic investment plans (SIPs) will also be stopped.”
Similarly, DSP MF has shared with us two methods to link PAN and Aadhaar. Let us look at it:
Online portal: On the new income tax portal, there is a “Link Aadhaar” facility (Link Aadhaar (incometax.gov.in)). Investors can keep their mobile phone handy to receive and submit the OTP [One-Time Password] during the process
SMS: Investors can Send a SMS to 567678 or 56161 from their registered mobile number in the following format: UIDPAN[SPACE][12-digit Aadhaar][SPACE][10-digit PAN]. Example: UIDPAN 123456789012 ABCDE1234F
For NRI clients, MFDs should ask their clients to consult their tax advisor and have their status updated with Income Tax / NSDL on or before 31st March 2022.
Remember that the Income tax department will levy a fee of Rs.10,000 if investor fail to link their PAN card and Aadhaar before March 31, 2022.
