ET in the Classroom: Mutual Fund KYC

economictimes.indiatimes.com:

Markets regulator SEBI has mandated KYC (Know Your Client) compliance for investors before starting investments in a mutual fund scheme.

WHAT IS THE PROCESS FOR COMPLETING KYC BEFORE STARTING MF INVESTMENTS?
To open a folio for investing in a mutual fund, an investor has to fill up the KYC form and attach valid proof of identity (POI) and proof of address (POA) documents as prescribed. The fund house or a SEBI-registered entity (SRI) will open a folio or an account and register the documents with one of the KRAs (KYC Registration Agencies) if not available in any of the KRA records. Valid POI documents include Aadhaar, passport, driving licence, voter ID card, NREGA job card or any other document notified by the Union government in consultation with the regulator. It is important to note that from April 1, bank statements or utility bills will not be considered as officially valid documents to complete the KYC process.

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CAN KYC BE DONE VIA DIGITAL MODE? Investors can do their KYC online without having to visit any fund house, registrar or distributor using the Aadhaarbased e-KYC. This removes the hassle of physical in-person verification. Investors can log on to the mutual fund website, or its registrar or third-party distributor websites that allow investments in mutual funds to get this done. A validation of investor credentials is done by sending an OTP on the mobile number registered with Aadhaar. In