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In a major relief to the Rs.57 lakh crore MF industry, SEBI has reportedly eased a few KYC norms to facilitate ease of doing transactions in capital markets including mutual funds.
SEBI is said to have asked KRAs not to stop redemption proceeds of investors if their KYC status is ‘On hold’ due to non-validation of email id and mobile number.
So far, investors whose KYC status was ‘On hold’ due to non-validation of email id and mobile number were not allowed to execute any financial and non-financial transaction in the capital markets including mutual funds.
Another key development is making either email id or mobile number mandatory to invest in mutual funds. Currently, both email id and mobile number are required to be validated to implement the two factor authentication in mutual funds.
With this, MF investors will not be required to give both email id and mobile number to invest in mutual funds. This will help many NRIs who do not have Indian SIM cards and senior citizen investors many of who do not have email id.
In addition, fund houses and market intermediaries have been asked not to insist NRIs to do re-KYC if their KYC status is ‘Registered’. However, NRI investors with KYC status of ‘On hold’ will have to do re-KYC to execute financial or non-financial transactions in mutual funds and other capital market products.
SEBI has reportedly asked KRAs to implement these changes immediately.
