Have you completed the ‘know your client' process?

The KYC (know-your-client) procedure has been made mandatory for all investments in mutual funds from January 1st regardless of the amount that is invested.

If you don't have the KYC acknowledgement from CDSL Ventures, none of your mutual fund investments will go through including systematic investment plans that are in operation!

KYC information of an investor is maintained in a centralised database now. CDSL Ventures, a subsidiary of Central Depository Services Limited is carrying out this work on behalf of the mutual funds.

This process of centralisation of data is going to make life simpler for you. Here's how.

From now on as you change address you need not report to every fund house with which you are associated.

You just have to send a request to CDSL Ventures and the information will be updated in the records and intimated to all the mutual funds.

The change

Till last year an investor was not required to go through the KYC procedure for investments below Rs 50,000 in a mutual fund.

In cases where a KYC was done, it was done by fund houses individually and the investor had to go through the complete process each time he invested in a new fund house. This is no longer the case.

From January 1{+s}{+t} this year all individuals who desire to invest in mutual fund schemes have to compulsorily complete the KYC process with CDSL Ventures.

This is applicable for all additional and new purchases under a scheme and all existing or new SIPs requests in a fund, the investor is required to be KYC compliant. This mandate applies for all investors either - individual or a joint holder.

Non-resident individuals are also required to go through this process. And currently, CDSL Ventures doesn't charge any cost for this service.

Getting it done?

A KYC application form can be collected from any POS (Points of Service) appointed by CDSL Ventures. The list of POS is provided in the website of CDSL Ventures

(http://www.cvlindia.com/). You can download this application also from the website of CAMS or AMFI and also individual mutual fund houses.

An individual is not required to personally collect and submit the application for KYC. One can get this done through his representative or even a mutual fund distributor.

After filling in the form and attaching the required documents, it has to be submitted to a POS.

Once the verification is complete, the investor will receive a letter from CDSL Ventures that certifies the individual's KYC compliance.

This letter has to be preserved by the investor for producing at the time of applying for investment to a mutual fund then on.

From the time one submits the request for KYC compliance, one can check the status of the application at CDSL Venture's website (http://www.cvlindia.com/inquiry_kyc01.asp).

All that you need to do is to provide your PAN card number and the system will tell you the progress that has been made.

But just remember that in-case your application is rejected for lack of information or insufficiency of documents, you need to get it sorted and re-apply before you invest.

What does it require?

For KYC compliance, the investor is required to submit the PAN card copy, a recent passport size photograph and proof of address along with the application form. For proof of address, one can give a copy of the passport, driving license, ration card, voter's identification or a bank pass book.

From the time one is KYC compliant, he needs to intimate any change in his name or address or status or signature or any other key information to CDSL Ventures. This can also be done through a POS. Here the individual is again required to give a copy of the PAN and the proof for change of address/status. The process of updation of data in the record of all mutual funds wherever one is invested will take a minimum of 10 days.

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