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While updating of nomination and Aadhaar PAN linking have got extension, MF investors still need to verify their mobile number and email ID and update their PAN and PEKRN number with MF folio by March 31, 2023.
Failure to comply with these two norms will cause disruption in your business. Let us look at these changes in details:
Two-factor authentication (2FA)
SEBI implemented two factor authentication for MF redemption. Investors need to key in OTP to redeem their money from mutual funds through online mode. The two-factor authentication will also be implemented for subscription of mutual funds. Currently, it is applicable at the time of redemption.
One major requirement to implement these changes is to validate mobile number and email id of investors. This task has to be done by March 31, 2023.
Both CAMS and KFintech have launched their respective self-declaration forms through which MFDs can help their clients update email ID and phone number across all fund houses. Your clients can visit CAMS and KFintech to update their mobile number and email id online.
Updating PAN and PEKRN
It is compulsory for investors to update their PAN and PAN Exempt KYC Reference Number (PEKRN) in MF folios by March 31, 2023.
AMFI has clarified that investors with such non-compliant folios cannot execute any financial transaction in mutual funds from April 1, 2023.
You can visit CAMS to update your PAN or PEKRN with MF folios. We could not find KFintech link till the time of filing this story.
