Around 1.3 crore mutual accounts are ‘on hold’ due to incomplete KYC, according to KYC registration entities (KRAs). The reason behind this is that the individuals have provided non-Aadhaar and non-officially valid documents (OVDs) during the initial KYC registration process. As per the new rules set by the Securities and Exchange Board of India (SEBI), effective from April 1, 2024, investors with an 'on hold' KYC status will not be able to carry out any transactions in mutual funds.
