You won’t be able to buy MFs from a new AMC if your KYC status is not validated!
Published by freefincal
Abhishek Kumar's role: Wrote this article
Abhishek Kumar wrote this article on why mutual fund investors should check their KYC status after SEBI's 2024 re-KYC deadline, and how to fix it so that investing with a new fund house is not blocked.
What Abhishek Kumar said
Why did some mutual fund investors suddenly face KYC problems in 2024?
SEBI's master circular on KYC of October 2023, issued under the anti-money-laundering record rules, asked investors whose KYC rested on documents like bank statements or utility bills, rather than an officially valid document such as Aadhaar, a passport or a voter ID, to redo it by 31 March 2024. Many people put it off, the way students leave work until the night before, and after the deadline they found they could keep their existing holdings but could not start investing with a new fund house.
How can I find out whether my KYC is fine?
I suggest the online route: open the KYC inquiry page of a KYC registration agency, enter your PAN and look at the status column. "KYC Validated" means you have nothing to do. "KYC Registered" lets you continue with funds you already hold, but buying from a new fund house needs a fresh KYC with an officially valid document. "On hold" or "rejected" means you must complete KYC again before any purchase or redemption. Calling fund house or registrar helplines also works, but it is far slower.
How do I redo my KYC, and what should I watch out for?
Offline, you submit a KYC form with the document to a fund house or a registrar, and the update flows through the KYC registration agencies to all your holdings under that PAN. Some fund houses also allow it online. In both cases make sure your PAN and Aadhaar are linked first. We also found that some registrars did not accept a driving licence even though SEBI's circular lists it, so I would use Aadhaar-based validation to avoid a rejection.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on mutual funds
This guest article explains the re-KYC deadline of 31 March 2024 for mutual fund investors whose KYC had been done with documents other than an officially valid document such as Aadhaar or a passport. It covers how to check KYC status online, what the statuses "registered", "validated", "on hold" and "rejected" mean for new purchases, and how to redo KYC offline or online.
Publisher source
You won’t be able to buy MFs from a new AMC if your KYC status is not validated!