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The Central Board of Direct Taxation (CBDT) has instructed through CAMS that the MF industry including AMCs, MFDs and exchange platforms should ensure that name and date of birth (DOB) of an investor appearing on PAN or IT records and the mutual fund folios should match completely.
If there is a mismatch between the name/DOB appearing on PAN and MF folios, the RTAs will have to reject the transaction including SIPs and redemptions.
In a communication, CAMS said, “In lieu of sharing the name as per ITD/PAN Card, reverse feeds will be provided to us only with a 'Yes' or 'No' confirmation. This removes the possibility of RTAs building name matching logic at our end and will lead to a rejection of transactions wherever there is a mismatch in investor name or DOB. Hence, we request all our distributors, channel partners, exchanges and MFU to implement changes in transaction reporting with effect from 1st April 2024.”
With this, MFDs will have to ensure that their clients use name appearing on PAN to open a new MF folio with effect from April 1, 2024. Also, the details provided in the form should match with the income tax records.
Also, the investors will have to mention their DOB or DOI (date of incorporate for non-individuals) based on PAN card only. In case of minor investor, guardian name and DOB will be mandatory, said CAMS.
If there is mismatch in the name and DOB on PAN and MF folios, it should be rectified in PAN and income tax records before MF folios.
Existing investors with name and DOB mismatch between PAN and MF folio should immediately rectify their details to transact in mutual funds, clarified CAMS.
