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| About KYC: |
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As part of Prevention of Money Laundering Act (PMLA) all Mutual Funds are required to comply to the “Know Your Customer” guidelines wherein they are required to perform customer due diligence for all their investors. But to save investors from the hassle of producing the proof documents to all the MF at the time of investment, Association of Mutual Fund Industry (AMFI) along with the Mutual Funds has entrusted CDSL Ventures Limited (CVL) to put in place proper systems and procedures to complete the customer due diligence for all the mutual fund investors.
The KYC for investor will be performed based on the Permanent Account Number (PAN), so submission of PAN is mandatory for all the investors. CVL will not issue any new number instead PAN will be accepted as the identification number for the investor. The investor will quote their PAN at the time of investment in Mutual Fund Schemes for which the RTA of the respective Mutual Fund will access the CVL database for detailed information. It should also be noted that investors are required to registered with CVL failing to do so the KYC for the investor will not be complete and the investment for the investor is liable to be rejected.
For complying with the KYC all the investors would approach Point of Service (POS) for submitting their KYC Application Form (KAF) and the mandatory documents of Proof of Identity and Proof of Address. An investor can apply for KYC to CVL under any of the following categories and sub-categories (based on the Mutual Fund investor categories): |
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| Category |
Sub-Category |
| Individual |
1. |
Resident Indian |
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2. |
Non-Resident Indian |
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| Non-Individual |
1. |
Corporate |
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2. |
Body Corporate |
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3 |
Partnership |
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4 |
Hindu Undivided Family (HUF)s |
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5 |
Trusts |
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6 |
Financial Institutionss |
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7 |
Foreign Financial Institutions (FII)a |
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8 |
Association of Person |
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9 |
Bank |
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10 |
Government Body |
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11 |
Defence Establishment |
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12 |
Any Other |
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Note: A minor (less than 18 years old) cannot apply for KYC.
The POS will process the application forms for new KYC application, which will consist of following important functions:
1. Verification of application form and documents received.
2. Data entry in the application software.
3. Dispatch of physical document to CVL.
4. Error Correction and Change Request
Detailed procedure for each function to be performed by the POS is discussed in the following chapters.
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