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In another KYC related relief, SEBI has allowed redemption even if KYC status is ‘On Hold’ under one specific condition.
According to the SEBI norms, if KYC was held up due to non-validation of email id and one of conditions like proof of identity (PoI) or proof of address (PoA) is validated, then AMCs/RTAs will have to honour the redemption request even if the KYC status of the PAN is ‘on hold’.
However, the validation of mobile numbers is compulsory here.
In an FAQ, CAMS said, “To avoid inconvenience to the existing investors, SEBI has given some minor relaxations. If the KYC status is On-Hold as of March 31, 2024 due to Email not validated but all other KYC attributes including mobile number has got validated, then redemptions are allowed only on those PANs.”
The RTA said, “Wherever KRA provides the reason for KYC On-Hold as required above, we will consider for redemptions alone. Switch-Outs are not allowed, as Switch-In has to be processed.”
