Mutual fund investors: Do you need to do KYC again? Check new rules here
Many investors are discovering that their existing KYC status has become invalid. The validity is determined by the identity or address proof submitted during KYC registration. The regulator has narrowed down the list of officially valid documents (OVD) that can be used as proof. This list includes documents like Aadhaar, passport and voter ID, among others. The previously valid documents like bank statements and utility bills are not in the revised list. So your previously registered KYC would have been put ‘on hold’ if it was done with non-OVD documents, or your e-mail/mobile were not verified. Such investors are no longer allowed to transact even for existing investments. This means any running SIPs or fresh investments will not go through, nor will they be able to redeem the money.
These investors must complete a new KYC process by submitting any of the OVDs to either a mutual fund house, KRA (KYC Registration Agency), or mutual fund platform. “All investors whose KYCs are on hold have to do it all over again,” asserts Amol Joshi, Founder, PlanRupee Investment Services. Once their KYC status is updated to ‘validated’, they can start transacting again.
Meanwhile, numerous other investors are tagged under the ‘KYC registered’ status. These are the investors whose initial KYCs were either based on physical Aadhaar or a non-Aadhaar OVD (which could not be validated by the issuing authority), but both their mobile numbers and e-mail IDs have been validated by the KRA. While these individuals can proceed with
