Mutual Fund KYC Update: Significant modifications have been made to the Know Your Customer (KYC) rules for mutual fund investors. By March 31, investors must update their KYC with valid documents. Registrars KFinTech and CAMS have issued notices to distributors, stating that investors who have used bills or bank statements for KYC will need to update their KYC with official valid documents. The deadline to complete this task is March 31.
Why is KYC Update Necessary?
Market regulator SEBI has made KYC mandatory for mutual fund investments. It establishes the identity and address of investors through relevant documents, thereby reducing instances of fraud. Without updating KYC, investors cannot withdraw nor deposit SIP installments.
Which Documents are Valid for KYC?
Documents such as government-issued identity cards, certificates from gazetted officers, property or municipality tax receipts, bank account/post office account details, utility bills, and pension payment orders are not valid for MF KYC. However, Aadhaar card, driving license, voter ID card, NREGA job card, and National Population Register (NPR) are valid for KYC.