Mutual Fund Investors New KYC Norms

*Regulatory guidelines on registering new investors for fulfilling KYC norms*

SEBI vide its circular SEBI/HO/MIRSD/DoP/P/CIR/2022/46 dated April 06, 2022 has given new guidelines to be followed by KRAs towards KYC registration. These new guidelines are effective 1st November 2022.

*Validation of Mobile Number and Email Address: Investors are requested to mention their Mobile Number and Email Address* in the KYC application form. KRAs will validate the mobile number and email ID by sending OTP to the investor, which the investor must confirm by refeeding the OTP number using the link sent to them. The same procedure will be applicable for any modifications to KYC records already registered with the KRAs.

*Validation of Aadhaar:* If investor submits Aadhaar as an OVD (Officially Valid Document) for new KYC registration, the Aadhaar details will be validated by KRA. The data fetched from UIDAI will be validated for the below mentioned attributes:

a) Name of Aadhaar holder

b) Photo as in Aadhaar data

c) Address as in Aadhaar data

d) Gender

In summary, KRA will validate Mobile number, Email ID and Aadhar details for both new KYC registrations and modification requests for existing KYC records. Specifically for Aadhar as OVD cases, with *effect from 01 November 2022,* investors will be able to invest in Mutual Funds only if their KYC status is shown as *“KYC Validated”.*

PAN & PEKRN (PAN-exempt KYC Reference Number) will continue as KYC identifier and KYC validation status will be shown in the KRA website.

_Source: https://www.camsonline.com/Investors_