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KYC Norms

Under the Prevention of Money Laundering Act, 2002 (PMLA), on 01 July , 2005 the Securities and Exchange Board of India (SEBI) has issued a guideline which requires all Mutual Funds to follow the Know Your Customer norms. The effective date for KYC compliance is February 1, 2008.

With effect from January 1, 2011 the new KYC applicability and requirements are as under -

PAN Based Common Standard KYC through CVL
This is applicable for All Client Categories and Any Amount of investment
1. New / Additional Purchases
2. Switch Transactions,
3. New SIP Registrations (including SIP related products) received from effective date.
4. New STP Registrations (including STP related products like trigger facilities) received from effective date.
5. New DTP Registrations (including DTP related products) received from effective date.

Non PAN based KYC applicability:

For certain nature of transactions and type of clients, PAN is not mandatory. In such cases common standard KYC through CVL will not apply.
In such cases, the client will have to submit certain documents as elaborated below and KYC will be handled by the AMCs/RTAs directly.
A. Micro SIPs: Micro schemes such as Micro SIPs upto Rs. 50,000 per year per investor.
  I. Documents required:
  1. Standard specified identification instruments like Voter ID card, Government/Defense ID card, Card of Reputed employer, Driving License, Passport in lieu of PAN.
2. Proof of address copy. It is clarified that where photo identification documents contains the address of the investor, a separate proof of address is not required.
3. Supporting documents copy shall be self attested by the investor / attested by the ARN holder mentioning the ARN number or attested by any competent authority.
  II. Please refer to AMFI Guidelines for Uniform Implementation no. 35P/MEM-COR/4/09-10 dated July 14, 2009 (Annexure I) and Revised guidelines (Annexure II) for more details.

B. Investments from Investors residing in Sikkim.

  I. Documents required:
a. xisting SIP / STP / DTP registrations (and similar facilities) including those received till December 31, 2010
b. Dividend reinvestment transactions of any amount.

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