Fund basics: Changing your status

Any change in residential status of investors, such as from NRI to Resident Indian or vice-versa or minor investors attaining the age of majority, needs to be communicated to the KYC Registration Agency. Such changes should be incorporated in mutual fund folios too.

Registration Agencies for NRIs

Forms are available at the websites of the KYC Registration Agencies for changes in personal particulars. The section “New Status” should be filled in and submitted to the intermediary – mutual fund/registrar. If the nationality of the applicant has changed, it should be indicated in the field “Nationality”.

The list of supporting documents required including the proof of overseas address in the case of change to NRI and proof of local address in the case of change to Resident are mentioned in the form. Investors must submit the same to the intermediary

The change in address details will be automatically changed in the records of the mutual funds in all folios across all funds where the KYC Status has been updated.

All other change details, namely tax status and contact details will have to be communicated separately to the respective mutual funds/registrars for updation in their records.

Updating details

To change the status from NRI to Resident or vice versa with the mutual fund, a simple request letter duly signed should be submitted informing the fund about the change.

Bank details of investors who change their status from Resident to Non-resident would have to be updated to NRO. Similarly, for those whose status has changed to Resident, the Savings account details would have to be updated in the folio.

The complete bank details should be furnished in the request letter and the copy of the cancelled cheque with the investor name pre-printed therein of the new bank is to be enclosed. Investors must check for details of any additional requirements with the futual fund.

An investor’s current tax status as Resident or NRI is required to be correctly updated for the processing of redemptions.

When units are held on behalf of a minor, the ownership of the units rests with the minor. A guardian operates the account until the minor attains the age of majority.

Prior to the minor attaining the age of majority, mutual funds send a notice to the registered correspondence address advising the guardian and the minor to submit an application form along with the prescribed documents to change the status of the account to “major”.

KYC Compliance at the KRA

An investor who has turned major should complete the KYC formalities and be KYC Compliant. Only then will the status from Minor to Resident Individual be updated by the mutual fund.

The following are required to be submitted to the mutual fund:

A Service Request form (available at mutual fund/registrar websites) duly filled and containing details like Fund, name of the investor, folio number

Age proof - Birth Certificate/ PAN card copy/driving licence

Bank particulars with the relevant proof attached – cancelled cheque with the name and account number printed therein/or a copy of the bank statement showing the name of the investor and account number duly attested by the bank manager

Signature attestation of the investor (major) by the bank manager and guardian

On receipt of the documents, the change in status is effected.

Contributed by CAMS Viveka, an Investor Education Initiative from CAMS. The views expressed herein are general practices in the Mutual Fund industry and may vary on a case to case basis.

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