- By Aditya Pratap Singh
- Fri, 03 May 2024 10:56 AM (IST)
- Source:JND
Mutual Fund KYC: If you are not able to withdraw your money from a mutual fund, then you should check your KYC status. About 1.3 crore mutual fund accounts have been blocked due to incomplete KYC. According to KYC registration agencies, investors of these accounts had submitted other documents instead of Aadhaar and valid documents in the initial KYC registration process. According to SEBI rules applicable from April 1, 2024, investors with hold KYC will not be able to transact in mutual funds. This includes investing in new mutual funds or redeeming units from an existing mutual fund.
PAN and Aadhaar are required
Many investors had not updated their KYC with PAN and Aadhaar. The need for re-classification of KYC arose when it was found that many investors had not updated their KYC with PAN and Aadhaar. Utility bills (electricity, telephone), bank account details, etc. were used in many of these KYCs. SEBI no longer accepts these as valid documents.
About 7.9 crore of the 11 crore investors have valid KYC. The KYC of 1.6 crore investors is in the registered category. While 12 percent of the total investors cannot operate their demat accounts and mutual funds, hence a mutual fund investor needs to check the KYC status before making any transaction.
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Holding KYC status
If your KYC is held then it means that the documents that documents that you have provided, cannot be independently verified or validated by the issuing authority. This applies to those who have submitted documents other than officially recognized ones, such as a passport, voter ID card, etc., as proof of identity and address to complete the KYC process.
Their existing investments will not be affected if the KYC status is KYC Hold or Validated. If they want to invest in a new mutual fund scheme, they have to submit KYC-related documents again.
How to check KYC status
- Go to any KRA website. For example, go to www.cvlkra.com.
- Click on the KYC Inquiry tab on the CVLKRA website.
- A new webpage opens. Enter the PAN number here, fill in the captcha, and click submit.
-The KYC status based on the PAN number entered will appear on the computer screen. The KYC status of an investor can be any of the three categories – Valid, Registered, or Pending.
