A crucial deadline is soon approaching for mutual fund investors. March 31 is the last date for MF investors to redo their KYC in case their earlier KYC is not based on ‘officially valid documents’. Failing to do so will result in prohibiting them from doing any further transactions in any form including SIPs, SWPs, etc from April 1.
What are the Official Documents & Non-Offcila Documents
Official documents for KYC include an Aadhaar Card, passport, and voter ID card, among others. KYCs done by Mutual fund investors based on utility bills, bank statements and other such documents are deemed non-official documents
Why Re-do KYC now?
The KYC needs to be redone as per an official master circular floated by the Securities and Exchange Board of India on KYC norms for the security market and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.
Mutual fund investors investing through an MFD (in regular plans), will be notified by their MFD about the necessity of updating your KYC, if required. However, if you have been investing independently (in direct plans), you may not necessarily receive notification.
How to redo KYC?
The investors need to submit a KYC form along with the official documents to their respective mutual fund houses or registrar and transfer agents. Followed by this the documents are updated by KYC registration agencies and the same is reflected alongside all the Mutual Funds linked to the particular PAN
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