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Know your customer (KYC) is mandatory for all investors who wish to invest in mutual funds. It involves verifying the investor’s identity to prevent fraud, money laundering, and other illegal activities. Here’s a step-by-step guide on how to complete your KYC for mutual funds.
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The first step in the KYC process is to gather all the necessary documents. These documents are used to verify your identity and address. Here are the documents you will need:
KYC Registration Agencies (KRAs) are SEBI-registered agencies that maintain KYC records of investors on behalf of mutual fund houses. Some popular KRAs include CVL KYC Registration Agency (KRA), NDML KRA, CAMS KRA or Karvy KRA. You can choose any KRA at your convenience. Each KRA has its website where you can download the KYC form and check your KYC status.
Once you have chosen a KRA, the next step is to fill out the KYC form. The form requires you to provide personal details such as your name, date of birth, gender, marital status, nationality, and occupation. You will also need to provide your contact details such as your address, phone number, and email id. In addition, you will need to provide your PAN and Aadhaar numbers.
The KYC form also requires you to declare your tax residency status. If you are a tax resident of a country other than India, you must provide additional details such as your Tax Identification Number (TIN) in that country.
Ensure that all the information you provide in the KYC form is accurate and matches the details in your documents. Any discrepancy can lead to the rejection of your KYC application.
After filling out the KYC form, you must submit it with the necessary documents to the mutual fund house or the KRA. You can do this by visiting the office in person, sending it through post/courier, or submitting it online. Ensure that you provide self-attested copies of your documents. Never send original documents.
When you submit your KYC form and documents, the mutual fund house or KRA will provide you with an acknowledgment receipt. Keep this receipt safe as it is proof that you have submitted your KYC application.
In-person verification (IPV) is a process where an authorized person verifies the investor and their documents in person. This is done to ensure that the information provided in the KYC form matches the documents and that the documents are genuine.
The IPV can be done at the mutual fund or KRA office. Some KRAs also offer video IPV, where the verification is done through a video call. During the IPV, you must show your original documents for verification.
Once the IPV and document verification are done, the KRA will process your KYC application. This can take up to a few days. Once your KYC is approved, the KRA will send you a KYC acknowledgment. This acknowledgment is proof that your KYC has been completed.
Using your PAN number, you can check your KYC status on the KRA’s website. If your KYC is approved, your status will be shown as ‘KYC Registered’. If there is any issue with your KYC application, your status will be shown as ‘KYC On Hold’ or ‘KYC Rejected’. In such cases, you must contact the KRA or mutual fund house for further guidance.
Once your KYC is done, you can start investing in mutual funds. Remember, you only need to do your KYC once. Once done, you can invest in any mutual fund without repeating the process.
