SEBI (Securities and Exchange Board of India) vide circular MIRSD/SE/Cir-21/2011 dated October 5, 2011 prescribed that standard KYC form to be used with uniform KYC guidelines and supporting documents and that KYC registration to be centralized through KRAs (KYC Registration Agencies).

Effective January 1, 2012, with a view to facilitate ease of investment, SEBI had introduced a uniform KYC procedure for investors across all financial intermediaries such as Mutual Funds, Depository Participants, and Portfolio Managers etc. This was enabled by introducing a standard KYC form, uniform KYC guidelines and centralized KYC Registration Agencies (KRAs) registered with SEBI. The uniform procedure also required additional KYC information to be provided on or before November 30, 2012;

Required things to do now:

All existing individual investors who are already Know Your Client (KYC) registered prior to January 01, 2012 through CDSL Ventures Ltd. (CVL) and who wish to invest in any new mutual fund or through any new capital market intermediary, apart from their existing investments, should complete the incremental KYC requirements using the KYC Details Change form for Individuals, on or before November 30, 2012. Existing non-individuals, KYC needs to be done afresh due to important and significant changes in KYC requirements using KYC Details Change Form for Non-Individuals.

For mutual fund investors, who have completed their KYC through CDSL Ventures Ltd in the old form i.e. before January 1, 2012 has been uploaded in the CVL-KRA system with KYC Status as “MF-Verified by CVLMF”. Once additional information is submitted and verified, the status will change to “Verified by CVLKRA”. To check your status, please visit KYC Registration Agencies, click “KYC Inquiry”, and enter your PAN and Submit.

See images below for the status of KYC done before January 1, 2012 as well as the status of KYC done after January 1, 2012.

Please note that this requirement is for new folio/account with a new mutual fund and it does not affect your subsequent transactions in existing folio/accounts (e.g. SIP started from August 1, 2011 for 3 years). However, additional details will be mandatory to register any change in KYC information like address, phone, etc. In case of non-individual investor, KYC needs to be done afresh due to significant and major changes in KYC requirement.

Non KYC Compliant Investors

If you are a Mutual Fund Investor and you have not done KYC in past, you need to fill up the KYC form (KYC Application Form –Individual, KYC Application Form- Non-Individual), super scribe it with your Mutual Fund AMC, your foilo no and submit it to the respective Cams or Karvy office along with the documents mentioned on the reverse of the KYC form.

If you are a new investor, all you have to do is fill out the new KYC form available ( Individual / Non-Individual ) and get the KYC and IPV (In-person Verification) done with the requisite documents stated in the form. All non-individuals new investors need to ensure to attach the annexure which should be forming a part of Know Your Client (KYC) application Form.

Please note, KYC is a mandatory requirement to invest in Mutual Fund.

You can ignore it very well if you have done KYC post January 1st 2012 and if your KYC status is shown as “Verified by CVLKRA”.

Uniform Know Your Client (KYC) Requirements for the Securities Markets

Leave a Reply

Your email address will not be published. Required fields are marked *

Read previous post:
Your present Cheque Book will Not be Valid After 31-Dec-2012

As per RBI guidelines, there have been certain changes made to the cheques issued by the Bank. However, these security...