With effect from April 01, 2024, SEBI has introduced revised KYC norms for mutual fund investors in India. The key changes are:
1. Mandatory KYC Validation
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Only KYC completed with Aadhaar (validated with UIDAI) and linked with PAN, along with verified email and mobile number, will have the status “KYC Validated.”
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Investors with this status can invest freely across all AMCs and securities intermediaries.
2. KYC Registered (Non-Aadhaar OVDs)
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If KYC was done using non-Aadhaar Officially Valid Documents (OVDs), or if Aadhaar is not validated, the status will be “KYC Registered.”
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Such investors can continue transacting with existing AMCs but cannot invest in new AMCs until their KYC is upgraded to “Validated.”
3. On Hold/Rejected KYC
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If documents or details are incomplete or unverifiable, the KYC will show as “On Hold” or “Rejected.”
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No mutual fund transactions are permitted until re-KYC is completed.
4. Removal of Deemed OVDs
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Utility bills and similar documents are no longer acceptable.
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Only valid OVDs such as Aadhaar, Passport, Voter ID, or Driving License are permitted.
5. PAN–Aadhaar Linking
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PAN must be linked with Aadhaar for KYC validation.
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Exceptions apply only to certain states exempted under law (e.g., Jammu & Kashmir), where other OVDs can be used.