Industry estimates suggest that the number of folios could drop sharply once unique investors are identified
Mumbai: In order to comply with SEBI’s August 22 diktat to de-duplicate folios in six months, RTAs are working in full swing to filter their database.
How they are doing it?
All the five RTAs (CAMS, Karvy, Franklin Templeton, Deutsche and Sundaram BNP Paribas) will first use the permanent account number (PAN) to identify multiplicity of folios held by single investor. This will help them track unique investors. PAN details will also help RTAs to identify if the customer is new or existing.
However, AMCs and RTAs do not posses PAN of all inventors in the mutual fund industry. Quoting PAN details was made mandatory in 2008. For those investors whose PAN is currently not available, RTAs will trace investors through their bank account numbers. They will check if a particular account number has been used for investing in different folios.
Once this is done, all RTAs will submit their database to CDSL Ventures Ltd (CVL) which will sift and cross verify with its own database.
CVL possesses the centralized database of all KYC compliant investors. KYC was made mandatory for all investments sizes since January 2011.
It is estimated that the number of folios could drop significantly after the de-duplication process is completed. Currently there are four crore folios in the Rs 7 lakh crore mutual fund industry.
