Common account to pave way for simpler MF accessibility, transaction

Our Bureau | | Updated on: Mar 04, 2015

Common account number provides one reference number for all MF investments

Mutual fund investments will become simpler with the introduction of the common account number (CAN) by MF Utilities India (MFUI).

Serves as hub

The benefits of transacting by using CAN are multifold. CAN provides one reference number for all mutual fund investments made besides doing away with the need for opening an account with each fund house to invest in their schemes. In addition, investors get a single view of all their MF investments besides having the convenience of submiting change requests (such as change of address) at a single point.

MF Utility provides a single transaction form for transacting in multiple schemes across mutual funds. A single time-stamp is given for all transactions appearing in the form. A single payment instrument for multiple investments does away with the burden of handling multiple instruments.

All these can be done through a common mandate registration form where one can mandate for multiple SIP (systematic investment plan) registrations, lump sum investments and multiple modes of payment.

A single window for complaint redressal — registering a complaint, tracking and redressal — has also been provided.

For those who are not KYC (know your customer) compliant, proof of identity and proof of residence should be furnished for completion of the KYC process.

BL registers

Individuals/entities that are already KYC-compliant with a SEBI registered intermediary (broker/ DP/ mutual fund and the like) have to quote their permanent account number (PAN), which is immediately verified by an MFUI representative.

BusinessLine had the opportunity of registering for CAN, a couple of weeks back and the process is fast and investor friendly.

A four-page application form takes not more than 10 minutes to fill up and captures the applicant details such as name, address, PAN, telephone/ mobile numbers/ e-mail ID, besides bank account number and nominee details.

Post-submission of the application, it takes 10 minutes to generate the CAN.

Published on March 04, 2015
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