As per recent regulatory developments, from January 1, 2011, KYC (Know Your Client) is mandatory for investors wanting to transact in Mutual Funds, regardless of the transaction amount. This means you will not be able to process any fresh MF purchases post January 1, 2011, unless you are MF KYC compliant as per CDSL Ventures Limited (CVL) norms.
So you can always ask your broker’s to get you forms and submit them for your KYC but as there are no mutual funds fees they may not be very helpful at times and so it is better you also know how you can get your KYC done yourself. The process is really very simple.
1. Get the Form
The KYC application form is available at the investor service centres of the Fund and CAMS or at any designated ‘Points of Service’ (POS) of CDSL Ventures Ltd. or can be downloaded from your broker, Advisor or AMC. I have uploaded them here for you to download. (KYC Form Individual / KYC Form-Non-Individual).
Documents required to be submitted along with the KYC application form are:
- A recent passport size photograph
- PAN card copy
- Address proof (Recent bank statement will work but if you have get your bank statement in email you need to visit your bank branch to get an original one.)
Once you have the documents ready submit at CAMS Online office in your city. You can find the address of your CAMS Office here. Make sure you carry the originals along with a xerox copy of the documents because at times they want to check with the originals.
After verification of the KYC application form and accompanying documents, investors will receive a letter certifying their KYC compliance. They normally give you the letter in few hours to a max of 24 hours and there is no charge for this verification.
You can verify your KYC status online here. The day you submit your form your status should be processing and once it is processed your status should become VERIFIED.
Actually KYC need not be done at your broker’s end but some online system does not accept order if they don’t have the data in their own system and so it is better to get that done as well. Once you have the letter you can send that letter’s copy to your broker to update. For ShareKhan you have to Fax the verification letter to 022-24982626 (Details here).
I hope this helps my fellow investors. Share your feedback in comments below.
Update: Links and other details updated 30th Jan 2017.