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N.K. Kurup

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Mumbai Feb 16 The requirement of a unique identification number for investing in mutual funds, known as MIN, will be done away with.

According to information available, mutual funds will be asked to follow the Finance Ministry's suggestion of making PAN compulsory for mutual fund applications.

The Association of Mutual Funds in India (AMFI), in consultation with the SEBI, is expected to make an announcement to this effect shortly.

The association had made MIN compulsory for investments of Rs 50,000 and above in mutual funds from January 1, 2007.

The mutual fund identification number was introduced to free investors from the hassle of providing documents every time they make an investment in a mutual fund.

Quoting MIN, investors could invest in the scheme of any mutual fund without submitting know-your-customer documents.

All mutual funds had made special arrangements with CDSL Ventures for processing documents and issuing MIN to investors free of cost.

Mr A.P. Kurian, Chairman of AMFI, said that though MIN may not be mandatory, investors would still have to go through the process of getting the MIN to be able to invest in mutual funds.

Mutual funds will have to follow the enhanced know-your-customers norms and for this purpose they would require a number of documents such as photograph, proof of residence, PAN, etc., from investors.

According to sources, the Finance Ministry is against asking investors to obtain more than one identification number.

The SEBI had earlier introduced MAPIN and subsequently suspended it.

Several investors had obtained this number from SEBI-appointed agencies at their own cost.

Afterwards, PAN was made compulsory for all investors in the equity market, followed by MIN. All these have created confusion among investors, said an analyst.

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