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Existing mutual fund investors who have invested before November 1, 2022 and submitted Aadhaar as KYC document will have to revalidate their KYC by April 30, 2023.
Earlier, SEBI instructed KRAs to validate all KYC details of capital market investors including those who have invested in mutual funds by May 1, 2023. KRAs will have to identify investors who have used Aadhaar as an officially valid document (OVD) and reach out to investors through email, phone or physical letter to revalidate it.
Considering the fact that a few KRAs are yet to start reaching out to such investors, you can ask your clients to modify their KYC by submitting eAadhaar before April 30, 2023.
Investors can revalidate their Aadhaar by submitting by Aadhaar XML or e Aadhaar or virtual ID (VID), which requires investors to follow a due process to download. Further, the downloaded Aadhaar must have QR code in it which can be scanned by KRAs.
SEBI has directed KRAs to generate an ID for every investor whose validation is completed successfully. This ID, the regulator said, can be used by investors to start new investments without going through the KYC process again.
Please note that if such investors do not validate their KYC within the stipulated timelines, transactions will not be permitted from May 1, 2023.
