KYC is nothing but the short name (acronym) for “know your client”. This is actually a procedure laid down by SEBI for its financial institutions, intermediaries and depositories. It is essential for an investor to be a KYC compliant (A person who has fulfilled the eligibility criteria laid down by KYC procedure.) Failing to do it, investor will be restricted from investing in financial market whether it is equity market or mutual funds.

This KYC procedure follows the prevention of money laundering act, 2002. In addition, the organization responsible for an infrastructure of this procedure is CSDL ventures limited, which fully owned subsidiary of central depository services of India.

All the financial records of investors in Indian market has been viewed, reviewed and maintained through KYC norms by this organization.

How to apply to be a Mutual Fund KYC compliant:

1) Youcan get the soft copy of Mutual Fund KYC form on websites of mutual funds, AMFI and Agencies where KYC is registered. Take a print out of that form, fill it up and submit it at Registration agencies, personally! If your in person verification has already been done then you can send it by post or courier.

2) Documents, you need to submit along with the application are your

  • Recent photo,
  • PAN card,
  • Passport as identity proof
  • Permanent and overseas certified address proof.
  • If you are from merchant Navy then you need to submit a mariner’s declaration or certified copy of Continuous Discharge Certificate too!

3) You should submit the certified true copies of all the required documents.

4) Attestation requirement: All the documents can be attested by officials of overseas branches of scheduled commercial bank registered in India, public notaries or Indian embassy/ consulate general of their respective country.

5) I.P.V: i.e. in person verification, which is necessary for NRIs or PIO, can be completed by NISM or AMFI certified distributor (who fulfills the criteria of know your distributor) or scheduled commercial bank.

6) If any of the documents (you are submitting) are in a language other than English then convert it to English before submission.

7) If any NRI /PIO have appointed someone as his/her Power of Attorney for investment in India then both the parties should be KYC compliant in India.

8) Other than all required documents PIO (person of Indian origin) should submit the attested true copy of the PIO card.

9) Mutual Fund KYC compliance procedure is free as of now so you do not have to pay anything while submitting an application.

10) And last but not the least, as soon as you get your KYC compliance , intimate it to the mutual fund houses with whom you are holding folios . So that they can update their records too!

The advantages of the Mutual Fund KYC:

If you have completed KYC once, then you can invest in any mutual funds any number of times with the same KYC.

If you need to change your address in all your mutual fund investments, you need not do it separately. If you could update that in the KYC, that will automatically reflect in all the mutual fund folios.

Though the Mutual Fund KYC procedure may look complicated for an NRI from the outside, it is actually a very simple procedure if you are aware of the above 10 points.

(The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners ( a firm that offers Financial Planning and Wealth Management. He Can be reached at [email protected])

Author Bio

Qualification: MBA
Company: Holistic Investment Planners Private Limited
Location: Chennai, Tamil Nadu, IN
Member Since: 01 Dec 2017 | Total Posts: 242
Ramalingam is the Founder and Director of Holistic Investment Planners Private Limited (WEBSITE - As the creator and architect of the 3-Dimensional Holistic Investment Approach, he has advised hundreds of clients including affluent business owners, corporate e View Full Profile

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One Comment

  1. Gh rao says:

    Sir I am a bfsi. Trainer. Ex banker and tax practiser for it’s. Planning to go ahead with. Gst. Returns. I am studying your. Articles. I have. Something to find fault with present npa.

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