Mutual Funds KYC: Do you invest in mutual funds? Then, we bring you a very important update for you. Mutual fund (MF) investors who have completed their KYC (Know Your Customer) process without first submitting valid documents will have to complete the KYC process again by March 31. If you have not done this yet, you will not be able to do Mutual Fund transactions like SIP, SWP or even redemption from April 1.
Why is re-doing Kyc needed
According to a SEBI circular dated October 12, 2023, under the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, MF investors will have to re-do their KYC as required. The process is essential for investors to update their KYC to avoid any inconvenience while investing in Mutual Funds.
How to re-do mutual fund KYC?
To redo KYC, one needs to submit a physical KYC form to the mutual fund house or RTA (Registrar and Transfer Agent). All needed documents should be submitted along as well. Once the form is submitted, the details will be sent to the KYC Registration Agencies (KRA), and the revised KYC information is updated for all mutual fund investments linked to the investor's PAN.
Investors need to confirm whether they have originally provided officially valid documents for their mutual fund KYC. They can verify it on the CVL KRA website or contact the mutual fund house or RTA helpline seeking clarification.
How long does re-do kyc for mutual fund take?
The duration of KYC registration may vary, ranging from two to 21 days depending on the processing efficiency of the concerned authorities and completeness of the documentation submitted. Customers can re-do their KYC only by physically submitting the documents, it can not be done online.