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1. What is KYC?
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KYC is an acronym for "Know your Customer", a term commonly used for Customer Identification
Process. The Prevention of Money Laundering Act, 2002 ("PMLA") forms the core of
the legal framework put in place by the Indian Regulators to combat money laundering
to be followed by banking companies, financial institutions and intermediaries by
administering KYC process and other reporting requirements such as suspicious transactions
reporting, etc. SEBI has prescribed certain requirements relating to KYC norms for
Financial Institutions and Financial Intermediaries (such as Mutual Funds) to 'know'
their customers.
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Applicability of KYC norms:
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Category of Investors
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Up to December 31, 2010
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W.e.f. January 1, 2011
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Resident Individuals
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Rs. 50,000 and more
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Any Amount
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Non Resident Investors/ Persons of Indian Origin
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Any Amount
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Any Amount
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Investors investing through Channel Partners / Distributors
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Any Amount
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Any Amount
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Non Individual Investors (Corporate, Partnership Firms, Trusts, HUF, etc.)
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Any Amount
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Any Amount
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This is applicable for All Client
Categories and Any Amount of investment
1. New / Additional Purchases.
2. Switch Transactions.
3. New SIP Registrations (including SIP related products) received from effective
date.
4. New STP Registrations (including STP related products like trigger facilities)
received from effective date.
5. New DTP Registrations (including DTP related products) received from effective
date.
Requirements For KYC From 1st Jan-2011
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2. What do you need to do to complete the KYC process?
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You need to submit an application form along with relevant supporting documents
to CVL through its Points of Service (POS). The list of PoS is available on www.cvlindia.com and www.amfindia.com. Once the KYC process is duly
completed in all regards, the investor needs to produce a copy of the acknowledgement
when investing for the first time in a Mutual Fund. There is no need to repeat the
KYC process individually for each mutual fund.
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Please click on the links given below to download the respective
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SEBI guidelines for KYC
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3. What are the supporting documents required to be submitted along with the KYC
application form?
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For Individual Investors
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Individual investors will have to produce their proof of identity and proof of address.
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List of documents admissible as proof of identity:
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- Original PAN card + self-attested photocopies (originals
will be returned over the counter after verification
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List of documents admissible as proof of address:
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- Driving License
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Latest telephone bill
- Latest electricity bill
- Latest bank passbook
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Latest bank account statement
- Latest demat account
statement
- Passport
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Ration Card
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- Registered Lease / Sale Agreement of Residence
- Voter Identity Card
- Proof of address issued by Bank Managers of Scheduled
Commercial Banks / Multinational Foreign Banks / Gazetted Officer / Notary Public
/ Elected Representatives to the Legislative Assembly or Parliament / a document
issued by any Government or Statutory Authority
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For Non-Individual Investors
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List of mandatory documents to be submitted are
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Company / Body Corporates
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- Certificate of Incorporation
- Memorandum and Articles of Association
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Resolution of the Board of Directors
- Authorised
signatories list with specimen signatures
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Hindu Undivided Family (HUF)
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- Deed of declaration
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Latest Bank Passbook / Latest Bank Account Statement
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Partnership Firm
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- Certificate of Registration
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Partnership Deed
- Documents evidencing authority
to invest
- Authorised Signatory list with specimen
signatures
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Trusts, Foundations, NGOs, Charitable Bodies, Clubs / Mutual Fund Schemes
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- Certificate of registration
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Trust deed
- Authorised Signatory list with specimen
signatures
- Scheduled Commercial Banks and Registered
Financial Institutions not incorporated under the Companies Act, 1956 / Regulatory
Bodies / Army / Government Bodies / Any other bodies created / incorporated / registered
under state or central legislation being eligible to invest in Mutual Funds
- Copy of Constitution / Registration documents
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- Documents evidencing authority to invest
- - List of authorized signatories
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Unincorporated association or a body of individuals
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- Proof of Existence / Constitution Document.
- Documents evidencing authority to invest.
- Authorised Signatory list with specimen signature.
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Foreign Institutional Investors (FIIS)
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- Letter and Certificate of Registration issued by
SEBI.
- Authorised Signatory list with specimen
signature
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For non resident Indians
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Non resident Indians residing out of India need to submit the following supporting
documents as proof of identity and address
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- Certified true copy of the passport
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Certified true copies of proof of overseas address and permanent address
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If any of the documents (including attestations / certifications) towards proof
of identity or proof of address specified above are in a foreign language, they
have to be translated into English before submission.
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4. How does an investor transact in Mutual Funds after completing the KYC process?
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Investors must attach their KYC acknowledgement letter along with the Investment
Application Form(s) / Transaction Slip(s) while investing for the first time in
a folio of a Mutual Fund. This has to be done for each folio. Applications Forms
/ Transaction Slips not accompanied by the KYC Acknowledgement are liable to be
rejected by Mutual Funds.
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5. Does the KYC Acknowledgement have an expiry date?
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No. Once the KYC Acknowledgement is obtained and informed to a Mutual Fund, it will
be registered against the folio. The same will exist in perpetuity, unless cancelled
by CVL.
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6. What do I do if I need to inform of a change in Name/Address/Status/Signature
etc.?
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You should intimate your change of Name / Address / Status / Signature etc. to any
PoS. You need to submit a copy of your KYC Acknowledgement and proof of new address
(in case of change of address) along with the application for the change.
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For any change request, the application form can be obtained from www.cvlindia.com. All details of holders as changed
and updated with CVL will be replaced in the records of all Mutual Funds.
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Please provide for at least 7 days for the changes to take effect with all the Mutual
Funds with whom you are invested. Remember that the address registered with CVL
is the final address. Intimating your change of address to Axis Mutual Fund or to
the Registrar of Axis Mutual Fund is not sufficient.
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For further details, please refer to www.amfiindia.com or www.cvlindia.com.
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