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AMFI has asked fund houses to facilitate digital KYC or eKYC facility on the homepage of their respective websites by Monday, said two MF officials requesting anonymity.
Through this facility, fund houses will basically redirect investors to their respective KYC registration agency (KRA) website based on their PAN details.
The good part is that existing investors having KYC status of ‘Registered’ and ‘On Hold’ can complete their KYC online without having to invest their money with the fund house. However, new investors doing fresh KYC will have to invest in a scheme if they want to use digital KYC or eKYC facility of fund houses.
Along with the fund houses, AMFI will also host such a link on its website by Monday.
According to the SEBI norms, KRAs have validated all KYC details of capital market investors. As part of this activity, KRAs have identified investors based on officially valid document (OVD) like Aadhaar, passport, driving license, voter ID and so on. KRAs also validated email id and mobile number before putting a validation tag on KYC status.
As a result, KRAs have assigned three statuses to KYC - Validated, Registered and On Hold.
Investors with validated tag will not have any problem in executing financial or non-financial transactions.
While investors with ‘registered’ tag will have to submit KYC documents again when they want to invest in new security or new mutual fund, investors with ‘on hold’ KYC status will have to revisit their KYC completely.
