Securities and Exchange Board of India (SEBI) has issued a guideline under The Prevention of Money Laundering Act, 2002 (PMLA) which requires Mutual Funds to follow enhanced Know Your Client (KYC) norms.
The effective date for KYC compliance is February 1, 2008.
Why KYC Compliance?
Prevention of Money Laundering Act, 2002 (PMLA) came into effect from July 1, 2005 and consequently SEBI mandated that all intermediaries (which includes Mutual Funds) should formulate and implement a proper policy framework as per the guidelines on anti money laundering measures and also adopt a Know Your Client (KYC) Policy. In view of this, presently each investor (including joint Unit holders) who wishes to invest an amount of Rs. 50,000 or more need to be KYC compliant as required by law.
KYC is a step towards making mutual funds clear and transparent.
What should the investor do?
1.
Download and Fill-up the KYC form
2.
Attach the following documents:
For Individuals
a.
PAN Card: The photocopy of the PAN with original. The Original PAN is for verification only and will be returned to you immediately.
b.
Proof of Address Document: (one for each distinct address). These should be either original + photocopies or attested / notarised photocopies. The documents may include one of the following: Latest Telephone/Electricity Bill, Passport, Driving License, Latest Bank Passbook or A/c Statement, Voter Identity Card, Ration Card, Latest Demat Account Statement, Registered Lease / Sale Agreement of residence.
If you are an NRI, you must mention your overseas address.
