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RTAs have removed phone number and email ids of MFDs, RTA, RIA, AMC and their employees. As a result, many investors with invalid phone number or email id can not do online transaction in mutual funds.
While they can submit their investment application through physical mode, MFDs will have to update mobile no., email id or both to continue to offer online transaction facility.
Distributors can download a report through mailback services offered by RTAs. While MFDs can download WBR9 from CAMS, they can download #211 from KFinTech to obtain list of affected clients.
“Distributors of the impacted investors will be intimated through electronic mode. Alternatively, distributors can also download the information from CAMS Mailback report ‘WBR9-Investor Static details with unit balance’. Distributors can review the contact details from the downloaded mailback report and advise the impacted investors to update their own email id/mobile number as applicable,” said CAMS.
Similarly, KFinTech said, “Distributors can spool the existing Report # 211 to identify the folios where the contact details have been deleted.”
Here are a few FAQs by KFinTech for MFDs:
Distributor is not registered in the folio, if the contact details still match, in such scenarios; will the contact details get deleted?
Yes, irrespective of the ARN/EUIN/RIA being registered in the folio, irrespective of the scheme/plan in which investor has invested, if the contact details match with any of the ARN/EUIN/RIA, such contact details have been deleted.
If the distributor is a joint holder or guardian in the folio, will the contact details get deleted?
No, if the ARN/EUIN/RIA is one of the holder(s) or guardian in the folio, by matching the PAN of the distributor with that of the respective holder(s) or guardian, contact details have not been deleted.
If the email id of the ARN is updated in a relative’s folio, will that be exempted from deletion?
Yes, provided the family declaration is requested by the investor by choosing the appropriate relationships listed out by the regulator.
When the email / mobile number is removed from the folio, will the folio be ceased for further transactions?
No, there will not be any restrictions imposed on the folio, except the fact that, investors will not be allowed to transact online and they will be restricted to transact only through physical mode. Mode of dispatch of account statement, gain/loss statement, consolidated account statement and portfolio triggers will be changed to physical on removal of existing email id.
Other points to remember:
- 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
