With the objective of simplifying KYC norms for investors and to bring about uniformity across all intermediaries, SEBI has issued three circulars – MIRSD/SE/Cir-21/2011 dated October 5, 2011, MIRSD/Cir-23/2011 dated December 2, 2011 and MIRSD/Cir- 26 /2011 dated December 23, 2011.
Key Highlights
1) With effect from January 1, 2012, Centralized KYC registration process through SEBI Registered KYC Registration Agencies (KRAs) has been implemented. Each investor has to undergo a uniform KYC process only once in the securities market.
2) Mandatory In Person Verification (IPV) for new investors investing post 01st January 2012 at the time of submission of KYC application request.
3) The KYC information of mutual fund investors who have completed their KYC through CDSL Ventures Ltd (CVLMF) up to December 31, 2011 have been uploaded by CVL in their KRA system (CVL-KRA) with the status as "MF – VERIFIED BY CVLMF".
4) While uploading KYC data into the KRA system, intermediaries are required to highlight such 'missing/not available' KYC information of a customer which was either not required or not taken, but is now mandatory based on uniform KYC guidelines issued by SEBI.
What do you, as an Investor, need to do?
1) In case you are an existing investor of Mutual Fund and if you are already KYC Compliant as per AMC records then there will be no effect on subsequent transactions (or ongoing SIPs) in the existing folios/accounts which is KYC compliant under the erstwhile centralized KYC with CVL (CVLMF).
2) In case you are an existing investor of Mutual Fund but not KYC Compliant, then you will have to submit the standard KYC Application forms uploaded on http://www.cvlkra.com/ along with supporting documents at any of the SEBI registered intermediaries. In Person Verification (IPV) will be mandatory at the time of KYC Submission. 3) If you choose to invest with a new mutual fund i.e. invest in a new mutual fund of other AMC where you have not invested earlier (or opened a folio earlier), you will be required to submit 'missing/not available' KYC information and complete the IPV requirements.
a) In case of Individuals, missing/not available details are as follows:
• Father's/Spouse Name,
• Marital Status,
• Nationality,
• Gross Annual Income or Net worth as on recent date
• In-Person Verification (IPV)
The individuals can use the 'KYC Details Change Form' available on www.cvlkra.com.
b) In case of Non Individuals, KYC needs to be done afresh due to significant and major changes in KYC requirements.
Please note that it is mandatory for the investor to complete the above formalities on or before November 30th 2012, for opening a new account/folio with any other new Mutual Fund.
Updation of 'missing / not available' KYC information along with IPV is currently a one-time requirement and needs to be completed with any one of the mutual funds i.e. need not be done with all the mutual funds where you have existing investments. Once the same is done then the KYC status at CVL-KRA will change to 'Verified by CVL KRA' after due verification. In such a scenario, where the KYC status changes to 'Verified by CVL KRA', you need not submit the 'missing/not available' KYC information to mutual funds again.
The above activity will enable you the benefit of investing in securities market without any hassle
Best Regards
Prakash Nair
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