Financial Awareness Level
What is KYC and how to do it?
Mutual fund companies are required by law to implement a “Know your Client/ Customer” (KYC) program. The program, among others, is a helpful safeguard against money laundering. The KYC process is critical for establishing a client’s identity.
Four Steps for getting KYC done
The KYC process involves four steps:
- Submitting a duly filled KYC form with signatures and a photograph.
- Providing one self-attested proof of identity (PoI).
- Providing one self-attested proof of address (PoA).
- Completing the in-person verification (IPV).
For getting their KYC done, investors are required to provide information on their personal details, address, contact information, tax status and beneficial ownership in case of non-individuals. The KYC process can be initiated offline or online. For offline KYC investors can visit any of the official points of acceptance (branches) and for online KYC, investors can visit the AMC or a KRA’s (KYC registration agency) website. KYC Registration Agencies (KRAs) were set up by SEBI for facilitating the KYC process. KYC details are centralised – this makes it easier for sharing KYC information amongst KRAs.
KYC For Individual Investors: Valid document for PoI and PoA
- PoI (Proof of Identity): Aadhaar card / Voter’s ID / Driving License / Passport / PAN Card / Government Issued ID cards.
- PoA (Proof of Address): Aadhaar card / Voter’s ID / Driving License / Passport / Registered Lease Agreement / Utility Bills less than 3 months old.
KYC for Non-Individual Investors
The documents required for non-individual investors depend on the type of entity as prescribed by legislation e.g Company, Trust, Partnership firm, Body of Individuals etc.
KYC Update: Updating Personal Information
Investors must update their KYC information if there is any change in personal information, such as a change of address.
The information contained in this document is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
FAQ Section
What is KYC and why is it important for investors?
KYC or "Know Your Customer" is a process mandated by SEBI that helps establish proof of identity and address for investors. It is important as it safeguards investors and prevents money laundering by authenticating the investor's identity.
What are the documents required for KYC?
Valid documents for KYC include Aadhaar card, Voter’s ID, Driving License, Passport, PAN Card, and Government Issued ID cards for proof of identity. For proof of address, documents such as Aadhaar card, Voter’s ID, Driving License, Passport, Registered Lease Agreement, Utility Bills less than 3 months old, and Bank statements less than 3 months old are valid.
How can the KYC process be done?
The KYC process can be done online or offline. The online process is easier and can be done through the AMC or KRA website. The offline process involves submitting physical documents, along with the KYC form, PoI, and PoA to the AMC or the KRA.
What is the KYC process for non-individual investors?
The documents required for KYC for non-individual investors depend on the type of entity. However, KYC is mandatory for non-individual investors as well.
How can investors update their KYC information?
Investors must update their KYC information if there is any change in personal circumstances. They can update their KYC information online or offline by submitting the necessary documents to the AMC or the KRA.
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Disclaimer
An Investor Education And Awareness Initiative Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs. if they are not satisfied with the resolutions given by AMCs, they may raise complaint through the SCORES portal on https://scores.gov.in. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login.
