Just like Banks, Even Mutual Funds have started with Know Your Customer,. In case of MF however, it is required only in case of investments over and above Rs 50000 for both NRI as well as RI.This is to update you on the requirements of Prevention of Money Laundering Act, 2002, and the subsequent guidelines issued by the Securities and Exchange Board of India (‘SEBI’) and Association of Mutual Funds in India (‘AMFI’) to ensure compliance with the same. As per the law all mutual Funds are required to verify identity and maintain records of all their investors through the mandated Know Your Customer (‘KYC’) process with effect from February 01, 2008.
The Circular reads as follows:
Applicability of KYC
Effective February 1, 2008 for any investment in mutual funds (which includes fresh /additional purchases and new SIP registrations) of Rs.50, 000/- or more, KYC must be completed for all unitholders (including NRIs and Person of Indian Origin) / investors in a folio (including guardian where the investor is a minor) irrespective of the mode of holding, and any Power of Attorney holders.
Investments where KYC is not completed will be liable for rejection by the Mutual Fund effective 1st February 2008.
As the Anti money laundering laws are mandatory and require urgent action, we request you to comply with the KYC norms in order to continue investing in your mutual fund account with us.
Just like Banks, Even Mutual Funds have started with Know Your Customer,. In case of MF however, it is required only in case of investments over and above Rs 50000 for both NRI as well as RI.This is to update you on the requirements of Prevention of Money Laundering Act, 2002, and the subsequent guidelines issued by the Securities and Exchange Board of India (‘SEBI’) and Association of Mutual Funds in India (‘AMFI’) to ensure compliance with the same. As per the law all mutual Funds are required to verify identity and maintain records of all their investors through the mandated Know Your Customer (‘KYC’) process with effect from February 01, 2008.
The Circular reads as follows:
Applicability of KYC
Effective February 1, 2008 for any investment in mutual funds (which includes fresh /additional purchases and new SIP registrations) of Rs.50, 000/- or more, KYC must be completed for all unitholders (including NRIs and Person of Indian Origin) / investors in a folio (including guardian where the investor is a minor) irrespective of the mode of holding, and any Power of Attorney holders.
Investments where KYC is not completed will be liable for rejection by the Mutual Fund effective 1st February 2008.
As the Anti money laundering laws are mandatory and require urgent action, we request you to comply with the KYC norms in order to continue investing in your mutual fund account with us.