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Investors with invalid phone number or email id will not be able to do online transaction in mutual fund from October 1, 2022. However, they can submit their investment application through physical mode.
Investment folios having mobile number and email id of other person (MFDs, RIAs, AMCs and their employees) will be treated as invalid. Since RTAs will remove these numbers and email ids, they will not be able to carry out two-step authentication to execute online transaction.
Currently, the RTAs are removing phone numbers and email ids of MFDs, RTA, RIA, AMC and their employees and this task will be completed by September 30.
In an FAQ on email id and mobile number remediation, CAMS said, “CAMS has carried out a verification process to detect seeding of contact details of intermediaries or their employees in folios which do not belong to such persons. Email ids and mobile number of intermediaries wherever found will be removed from investor’s folio on or before September 30, 2022 and communication will be sent to respective unit holders.”
MFDs can get details of such accounts through mail back services offered by CAMS and KFinTech. These investors will have to update their mobile number and email ID by visiting RTAs website or visiting RTAs office.
Here are a few points to remember:
- MFDs will have to provide family declaration if investment belongs to their family members
- Family involves self, spouse, guardian, dependent children, dependent siblings and dependent parents
- Clean up activity will only remove contact details. Other things remain intact
- The clean-up activity is not applicable to demat folios
- Distributors cannot update mobile number and email id on behalf of their clients
