Which investors are exempt from requiring a PAN and require a PEKRN?

Certain categories of investors are not required to have a PAN and can invest in mutual funds using a PAN Exempt KYC Reference Number (PEKRN):

Eligible for PEKRN

  • Minors – Investments can be made on behalf of minors who do not hold a PAN; the guardian’s PAN/PEKRN is used.

  • Residents of Sikkim – Exempt from the PAN requirement under regulatory provisions.

  • Sole Proprietorships (without PAN) – Allowed for micro-investments up to ₹50,000 per year per mutual fund.

Not Eligible for PEKRN

  • Hindu Undivided Families (HUFs)

  • NRIs/PIOs (except in rare cases of specific exemptions)

  • Non-individual entities such as trusts, companies, societies, and partnerships

  • Qualified Foreign Investors (QFIs)

PEKRN is intended only for specific exempt categories. All other investors must provide a valid PAN for mutual fund investments.

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