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Mutual Fund Investors ALERT! One Needs To Do THIS By March 31 To Avoid Transaction Blocks

New Delhi: With March 31, 2024, looming close, mutual fund holders are receiving a stark reminder to ensure their readiness. One critical change affecting mutual fund investors is the requirement to undergo Know Your Customer (KYC) procedures once again.

Alerts From RTAs

Mutual fund registrar and transfer agents (RTAs) CAMS and KFintech are actively reaching out to MF investors via email. (Also Read: Sam Bankman-Fried: Once Among America’s Wealthiest, Now Facing 25 Years Behind Bars — Read All About Former Crytpo Mogul)

Importance Of Redoing KYC

Investors whose KYC is not based on any officially valid documents must complete their KYC again before March 31. Failure to do so will result in them being unable to conduct MF transactions such as SIPs, SWPs, or redemptions from April 1 onwards. (Also Read: Agency Banks To Open This Sunday: Check What It Is, How They Operate & Full List)

Officially Valid Documents For KYC

KYC based on proofs such as bank statements and utility bills will no longer be valid after March 31. Investors must ensure their KYC is based on officially valid documents like an Aadhaar card, passport, and voter ID card, among others.

Regulatory Norms

The need to redo KYC stems from compliance requirements outlined in a SEBI master circular on KYC norms for the security market and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.

Redoing KYC Process

To redo KYC, investors must submit a physical KYC form along with relevant documents to mutual fund houses or RTAs. The updated KYC information is then communicated to the KYC registration agencies (KRAs). 

It Can Be Done Online?

It’s important to note that the redo of KYC cannot be completed online. Investors must adhere to the physical submission process.

Processing Time

This is another question that may come to your mind. The KYC registration process can take anywhere from two to 21 days, depending on various factors.

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