SEBI will consider AMFI’s recommendation to allow bank KYC as a valid KYC document to invest in mutual funds, said two people familiar with the development.
SEBI Chief U K Sinha today met AMFI and AMC CEOs to discuss the growth of the mutual fund industry.
C. VR. Rajendran, CEO, AMFI said, “As central KYC will take some more time to get operational, we have requested SEBI to allow bank KYC to invest in mutual funds. The market regulator is considering about this.”
The government is working towards implementing a common KYC across all financial products through central KYC or CKYC. In this system, there will be no need to do multiple KYC. Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) has been entrusted with the task of setting up the Central KYC Registry. CERSAI has appointed DotEx International Limited, a NSE group company, for setting up the Central KYC Registry.
Also, in its board meeting held on Monday, SEBI has decided to allocate funds to encourage the use of technology to ease KYC procedure for new investors to increase the penetration of mutual funds.
