Attention MF Investors: KYC Renewal Required By March 31 or Face Transaction Block
Attention MF Investors: KYC Renewal Required By March 31 or Face Transaction Block
Investors must complete re-KYC by submitting a physical KYC form (along with the necessary documents) to either a mutual fund house or the RTAs.

The deadline of March 31 looms close for mutual fund (MF) investors needing to update their KYC (know your customer). Failure to comply will result in a prohibition from engaging in any MF transactions, including SIPs (systematic investment plan), SWPs (systematic withdrawal plan), or redemptions, starting April 1.

Also Read: 5 Mistakes To Avoid When Doing Mutual Fund SIP

According to a report by Moneycontrol, emails from registrar and transfer agents (RTAs) like CAMS (Computer Age Management Services) and KFin Technologies (KFintech) have been sent to mutual fund distributors (MFD), specifying that investors whose KYC isn’t backed by any ‘officially valid documents’ must complete the process anew by March 31, 2024.

Here’s what this means:

  • KYC is mandatory for all MF transactions: KYC helps prevent fraud and money laundering. If your KYC isn’t up-to-date, you won’t be able to buy, sell, or redeem your mutual fund units.
  • Not everyone needs to re-do KYC: Only investors whose KYC documents weren’t officially valid previously need to take action.

How to find out if you need to re-do KYC:

  • Investors must note that if you invest through an MFD (in regular plans), they will notify you if re-doing your KYC is necessary. However, if you have been investing independently (in direct plans), you may not necessarily receive notification.
  • You should have received communication from your mutual fund’s registrar and transfer agent (RTA) like CAMS or KFintech.
  • Check with your mutual fund distributor (MFD) as well.

Recognised documents

The officially recognised documents listed in these emails comprise the Aadhaar card, passport, voter ID card, and others. KYC conducted using documents like bank statements and utility bills will cease to be valid after the specified deadline.

No online option

Online re-KYC is not an option. Investors must complete re-KYC by submitting a physical KYC form (along with the necessary documents) to either a mutual fund house or the RTAs. Subsequently, this information is relayed to the KYC registration agencies (KRAs), updating the KYC status across all mutual fund investments made under that PAN.

Missing the deadline:

If you don’t re-do your KYC by March 31st, your MF transactions will be blocked from April 1st onwards.

What's your reaction?

Comments

https://chuka-chuka.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!