FAQ on KYC
What is KYC?
KYC is an acronym for "Know your Client", a term commonly used for Client Identification Process.This would be in the form of verification of identity and address, financial status, occupation and such other personal information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.
To whom is a KYC applicable? Is there any exemption?
Currently, all investors (Individuals or Non Individuals) who wish to make an investment of Rs. 50,000 or above in a mutual fund scheme will be required to complete the KYC process. This would also apply to new Systematic Investment Plan (SIP) registrations on or after 01 February 2008, if each SIP installment is of value greater than or equal to Rs.50,000. Please find the list of personnel who are required to be KYC compliant:
1. Joint Holders
2. Minors
3. Power of Attorney (PoA) Holder
4. For transmission (IN case of death of the unite holder)
Source:http://www.cvlindia.com/faqs01.html#
The Association of Mutual Funds in India (AMFI) has asked all asset management companies (AMCs) to make KYC (know-your-customer) norms mandatory irrespective of the amount of investment for all non-individual investors /NRIs with effect from October 01, 2010. Non-Individual category will include corporate, partnership firms, trusts, HUF (Hindu undivided family), NRI and investors coming through channel distributors.
For individual investors, a decision would be taken only after feedback from the Securities and Exchange Board of India (SEBI).
For Individual retail investors KYC will be required only if the investment amount is of Rs.50,000/- or above.
Get answers to "What is a KYC form?", "Why is it so important?" and "How can I register?" Please click on Why KYC and How to fill it?
(Source:http://www.investorfirst.in/how_to/mutual_funds_1/why_a_kyc_form_how_to_fill_it.php)
So keep investing!!!
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