3% mutual fund accounts have ‘KYC Hold’ status: AMFI
mutual fund KYC (know your customer) rules came into effect from April 1, around 3% of MF accounts have ‘KYC Hold’ status, stated the Association of Mutual Funds of India (AMFI) on Thursday.
While noting that the mutual fund industry is addressing concerns for a smooth KYC process, AMFI CEO Venkat Chalasani said, “Together with AMCs, distributors and other stakeholders, we are committed to facilitating a seamless KYC validation process for all, thereby ensuring the integrity and accessibility of mutual fund investments across the board.”
“If KYC was to be an issue, then you clearly would have seen a downtick in transaction count. Amounts may not necessarily be the best indicator. It is really the number of transactions. And I think we have to, from a perspective of the industry, thank the regulator as well because they have also been pushing all of us, AMCs, MFDs, RIAs, etc, to make sure we handhold the customer,” said Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund.
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“I would not call KYC an issue. I just would call it for certain sets of investors, typically those who have invested maybe five years, eight years back, there is some hoops they have to cross and I think just putting your data in a validated format in today's technology age where there is so much cyber security incidents happening is just a good thing for customers,” he added.
Monthly data showed that mutual fund folios reached an
