How to Check Your Mutual Fund KYC Status?

Published On: 19-Jun-2020

All mutual funds houses undertake KYC (Know Your Customer) compliance in pursuance of the Prevention of Money Laundering Act, 2002, and SEBI (Securities & Exchange Board of India) guidelines. This process is made mandatory by the market regulator so that the transactions are seamlessly linked to the investor. Since PAN is the compulsory document towards Proof of Identity, it serves as a unique link for the stakeholders concerning all the transactions in the financial markets, be it with stockbrokers, depository participants or mutual funds, etc. 

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Further, the KYC compliance process is uniform across the financial markets. KYC Identification Number (KIN) is created by CERSAI for individual customer that can be quoted to invest across financial markets. 

What does KYC Status Mean?

When one is shown compliant with the KYC process, it means that the investor has submitted all the required documents, which are duly accepted by the processing authority. Once the investor is KYC compliant, any changes like residential address, mobile number, email etc. is required to be undertaken through KYC change request.  This process also enables the investors to change the address details etc. in all the mutual fund investments with a single application.  

Earlier in 2012, few categories of investors were exempt from providing Permanent Account Number (PAN). Investors who invest up to ₹50,000 per year per mutual fund are not required to furnish PAN. Such investors can provide approved proofs of identity in lieu of PAN and are allotted PAN-exempt KYC reference number. 

Since PAN is now mandatory for redemption of units for PAN exempt investors need to update their KYC details with PAN to redeem their investments from mutual funds. 

List of Documents eligible as Proof of Identity 

Following documents may be submitted as proof of identity (any one of these)

  1. PAN card with photograph – mandatory requirement, unless the investor is exempt from having a PAN as per the Income-tax rules. Also, PAN is compulsory for redemption.

  2. Aadhaar card

  3. Passport

  4. Voter ID Card

  5. Driving License

  6. Identity Card with photo issued by Central Govt./ State Govt./ Statutory authorities/ Regulatory authorities/ Public Sector Undertakings etc. 

List of Documents eligible as Proof of Address

Following documents may be submitted as proof of residence (any of these)

  1. Passport

  2. Voter ID Card

  3. Ration Card

  4. Registered Lease Agreement

  5. Driving License

  6. Utility bills like landline telephone, electricity, gas, etc. not more than three months old

  7. Bank account statement/ passbook not more than three months old

  8. Identity Card with photo issued by Central Govt./ State Govt./ Statutory authorities/ Regulatory authorities/ Public Sector Undertakings etc.

Check the status of Mutual Fund KYC

Investors may check the status of KYC compliance through the website of any of the KYC Registration Agencies (KRAs). The five authorised KRAs are CVL KRA, NDML KRA, DOTEX KRA, CAMS KRA, and Karvy KRA. 

The investor may enter the PAN along with the captcha code to check the status. If the KYC is completed with documents other than PAN, the investor may check the status by entering their name, date of birth, and the PAN exempt category along with the captcha code to check the status. Once the details are validated, the portal displays the date of initial KYC registration, date of modification of KYC records (if any) along with the checkbox of IPV verification. The IPV reflection checkbox reflects if the In-Person Verification is completed or not.

Investors may also check if they are KYC compliant at the time of making a transaction. Once the investor initiates the investment transaction, the portal tries to validate the KYC status with PAN as input. If the investor is KYC compliant, the investment process will proceed further; else, the investor will be redirected towards the KYC registration page.

So, check your KYC status right away through the process, as mentioned above.