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AMFI has asked MFDs to avoid reaching out to SEBI officials directly for KYC related issues of their clients.
This has come after AMFI found instances of distributor writing directly to SEBI officials requesting SEBI’s intervention in updating KYC status of their clients from ‘Registered’ to ‘Validated’.
Instead, AMFI has directed MFDs to first reach out to the respective AMC through their relationship managers or insist on clients to use SEBI platform to lodge their complaints.
AMFI said, “It has been brought to AMFI's attention that some of the MFDs are directly sending emails regarding KYC related complaints about difficulties/delays being faced by their clients in getting their KYC status updated despite submitting all the required documents to the email address of SEBI officials instead of taking up the matter with AMCs/KRAs and/or using the SCORES platform to lodge their complaints.
In this context, AMFI has requested MFD to follow the following process:
- As a first step, MFDs should reach out to the respective AMC to take up their complaints with the KYC Registration Agency (KRA). The operations team of the AMC can help MFDs and their clients to resolve this issue
- If the matter remains unresolved within a reasonable time, MFDs should assist their clients to register their complaint in SEBI Complaints Redress System (SCORES) portal at https://www.scores.gov.in/. Your clients can select the Category ‘KYC Registration Agency’ from the drop-down menu before lodging complaints.
Recently, SEBI has revamped its SEBI Complaints Redress System (SCORES) by launching its 2.0 version. Through this, the market regulator has further simplified the process of lodging complaints and grievances and reduced the turnaround time to 21 days.
SCORES is a web platform and mobile app for investors to lodge their complaints related to securities market entities - listed companies, SEBI registered intermediaries such as AMCs, RIAs, PMS companies and AIFs and SEBI recognized market infrastructure institutions.
AMFI said, “We request all MFDs to take note of the above and not to send such complaints by email to SEBI officials directly.”
