Investors get relief on KYC, can continue with SIPs and SWPs
Investors who had not used an officially valid document, such as Aadhaar, passport or a voter ID card, for their KYC (know your client) verification at the depositary are in for partial relief.
CDSL Ventures said on March 28 that investors whose KYC record meets the PAN — Aadhaar seeding validation and whose email and mobile number are validated by KRA will be allowed to continue transactions in the securities market with their existing intermediary.
This means such investors can continue with their systematic investment plan (SIP), systematic transfer / withdrawal plan or make redemptions in existing folios. However, these investors would need to undergo a fresh KYC in line with existing norms, if they wish to get onboarded with any new intermediary or make an investment through a new folio in an AMC.
«Such investors who wish to start a new folio would need to do their KYC again, and they will have to submit these physical documents to one of the RTAs,» says Viral Bhatt, founder, Money Mantra.
Earlier the markets regulator had specified that investors who had not used an officially valid document, would need to do their KYC again by March 31. Based on this, registrar and transfer agents (RTAs), namely CAMS (Computer Age Management Services) and KFin Technologies sent mails to mutual fund distributors (MFD), of their investors whose KYC is not based on any of the officially valid documents, and who need to do their KYC again before March 31, 2024.
They had mentioned if such investors failed to do their KYC
