AMFI vide their circular 35P/ MEM-COR/ 13/ 10-11 dated August 27, 2010 and 35P/MEM-COR/21/10-11 dated December 9, 2010 has introduced Know Your Distributor (KYD) norms for Mutual Fund Distributors with effect from September 1, 2010, requiring the distributors to submit mandatorily identity proof, address proof, PAN and bank account details with proof. It is also decided to introduce bio-metrics as a part of KYD process.
KYD norms will be applicable for fresh ARN registration and ARN renewal effective from September 1, 2010. The existing ARN holders would also be required to comply with KYD norms within 6 months i.e. by end of February 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements.
As per circular 35P/ MEM-COR/ 35/ 10-11 dated February 25, 2011, the ARN holders will now be required to complete the KYD process by March 31, 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements.
Computer Age Management Services Pvt. Ltd. (CAMS) will be the central agency for the purpose of KYD including bio-metrics. CAMS will be initially providing KYD facilities at 60 Point of Services (POS) which is expandable to more centers. CAMS has also agreed to provide this facility on temporary basis at places other than these POS if the number of distributors are not less than 50.
Presently there would be no charge to the ARN holders for carrying out KYD process. AMFI is sending communications to all existing ARN holders in this regard.
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