Distributors have to furnish additional documents for updating missing information of investors who had undergone KYC before January 1, 2012.
AMFI has shot off a letter asking AMCs and distributors to update the missing information of investors who had done Know Your Client (KYC) before January 1, 2012. AMFI has also asked them to seek only additional documents from such investors.
The investors who had undergone KYC registration before January 1, 2012 will have to be asked to provide additional information. This includes name of father/spouse, marital status, nationality and gross annual income/latest net worth etc. In addition, the investors will have to go through personal verification.
A Mumbai based distributor told Cafemutual that there was ambiguity on how to update the missing information. “In a few instances, the KRA system shows invalid KYC for investors. However, there is no specific information on missing documents. In fact, the system cited irrelevant reason for invalidating KYC.”
Another Mumbai based distributor said that the AMCs ask for fresh set of documents for updating KYC details of such investors which is cumbersome for both distributors and investors.
In an email sent to AMCs and distributors which Cafemutual has reviewed, AMFI has said, “AMCs have been advised to recognize the website printouts/letters issued by KRAs showing the KRA status and missing information/documents (if any) and seek only additional documents/information to complete the KYC as per extant SEBI guidelines prior to opening the account.”
“Pending stabilisation of KRA system and smooth functioning of inter-operability between KRAs, AMCs / RTAs were reportedly asking investors to provide KYC details/documents which resulted in inconvenience to investors. AMFI had taken up the matter with the KRAs, who have confirmed that the issues have been addressed and resolved. On checking the websites of the KRAs, it is observed that all KRAs are now showing details of the missing information,” said the AMFI’s email.
Besides, AMFI has attached the SEBI guideline on KYC in which the market regulator had clarified that individual investors who had completed KYC before January 1, 2012 with CVL will have to submit additional KYC details along with in personal verification. The regulator had told distributors that such updates can be done by using ‘KYC Details Change Form’.
However, corporate investors who had done KYC before January 1, 2012, have to undergo fresh KYC by submitting the necessary documents.
