Friday, 3 December 2010

KYC (Know Your Customer) for Investors

Form 01st January, 2011 submission of KYC (Know Your Customers) is mandatory for all investors and those who have a past history of investment and if the past investment is more than or equals to Rs. 50000/- the submission of KYC is mandatory. KYC is a must for all investors including Non individuals and NRIs (Non Resident Indians)

What is KYC?

The Full form of KYC is Know Your Customers and it is the term used for Customer Identification Process. This is started as per the Prevention of Money Laundering Act – 2002. This is used by financial institutions and other related companies to identify the client and to get relevant information. KYC is first introduced in February, 2008 for investors those who have invested Rs. 50000 or more in Mutual Funds. Now KYC is used for identification and also to prevent identity theft, money laundering, fraud and terrorist financing.

Be a KYC Compliant

CVL (CDSL Ventures Limited) is a subsidiary of CDSL (Central Depository Services (India) Limited) is doing the KYC verification for Mutual Fund Industries.

Copy of the Following documents should be submitted for the KYC verification.

1. Filled up KYC Application Form

2. Residential Address Proof such asUtility Bill, Passport, Letter from employer or housing society, ration card, voter ID or drivers license etc. can be submitted for address proof.

3. PAN (Permanent Account Number)

You can submit KYC application yourself or sending through courier. When you submit the application yourself keep original documents with you for verification or send through courier and copy of the documents must be attested by a gazetted officer or Notary Public or a scheduled bank manager. At present the KYC verification is free of cost. It may become chargeable in recent future.

KYC for NRI or POI

The Non Resident Indian or Person of Indian Origin should submit Certified True Copies of Passport, overseas address, permanent address and PIO card (Only for PIOs) for KYC verification.

After completing KYC process you should attach a copy of the KYC Acknowledgement along with Investment Application Form(s)/Transaction Slip(s). Any application forms for investments not accompanied by a KYC Acknowledgement are liable to be rejected.

Download KYC Application Form

Check Your KYC Status

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11 comments :

  1. [...] those have an account in any bank can apply for the scheme and it is assumed that the bank followed KYC norms in respect of such [...]

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  2. if an existing mf investors name doesn't match (i.e middle & first name in other order) with the PAN, can the investor register for KYC. Secondly, what Name must be mentioned in KYC form? i.e name in PAN or other document.

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  3. Name in pan should match with actual name. Now you can change the name in the pan as it is appeared in other official documents. You can register your KYC only with the name you have in your bank accounts.

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  4. Hi,

    You mentioned that "The Non Resident Indian or Person of Indian Origin should submit Certified True Copies of Passport, overseas address, permanent address and PIO card (Only for PIOs) for KYC verification."

    What do you mean by certified true copies? Who all can certify those (for example in UK)? Kindly advice.

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  5. You can do self certification (self attested) or can attested by any authosied person

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  6. Why the KYC is necessary for MF Investor for any amount as on 01st Jan 2011.

    What things you are cheking in KYC complaint. Please give details.

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  7. KYC is simple know your customer or client. To know the whereabouts and the physical existence of the customer. This can avoid fake transactions, binami transactons, tax evasion and even the financial dealings with antisocial elements etc. To know more about KYC please visit
    http://www.cvlindia.com/faqs01.html#

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  8. T.R.Venkataramani15 March 2011 at 00:58

    KYC status says that PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE. Copies of documents enclosed with the application itself. What documents you expect further

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  9. No problom, it will take at least one month to complete the process. A last you will get the verfied status, If they could verify form the papers submited.

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  10. hi,
    On my atm trans. slip,there is a statement that'please ensure that your account ir KYC COMPLIANT'
    What is this?and what should i do now?

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  11. If your ATM transaction slip shows to ensure your KYC, jsut visit your bank branch where you have the bank account and get the format and complete it. IF you take your PAN card, Passport size photograph, identity proof and address proof, it will be easy for you.

    ReplyDelete