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While it is important for MF investors to ensure that their name and date of birth appearing on PAN and MF folio match completely, there will not be disruption in their existing investments.
Investors with different name can continue to execute transaction including SIP and redemption in their existing mutual fund schemes. However, if these investors want to execute transaction in a new fund house or if the new fund house validates such a KYC, it will not go through. These investors will have to first incorporate changes to their existing KYC details.
Further, the name and DOB change requests cannot happen online. Investors with name and DOB change request will have to physically submit KYC modification form along with a handwritten letter to all existing AMCs.
According to the government’s directive, 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.
For all new clients, MFDs will have to ensure that their clients use name appearing on PAN to open a new MF folio. Also, the details provided in the form should match with the income tax records.
The investors will have to mention their DOB or DOI (date of incorporation for non-individuals) based on PAN card only. In case of minor investor, guardian name and DOB will be mandatory.
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.
Currently, MFDs will have to rely on clients to rectify name/DOB change request as the industry is yet to come up with reporting on such folios.
