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Investors having unverified KYC details like phone numbers or email ids may not redeem their MF units post implementation of the two factor authentication.
Fund houses have started asking investors having unverified KYC details like mobile number and email id to update their folios to avoid inconvenience in redemption.
To start with, fund houses with the help of RTAs have shortlisted folios which captured phone number and email ids of distributors, AMCs, RTAs, RIAs and their employees.
In a communication sent to investors, one of the top fund houses has written, “As per our records, for the following folios the mobile number registered seem to be of your distributor, hence we would request you to update your mobile number on or before May 25, 2022, else we will constrain to delete same against your folio.”
The move is in line with the AMFI’s latest best practices circular in which it has asked fund houses to verify phone number, email id and address linked to MF folios to implement two-factor authentication.
The two-factor-authentication is simply authenticating the redemption request by keying in one time password (OTP) received on registered phone number or email id. The first factor authentication is logging into the MF investment account itself.
