KYC forms in Mutual Funds undergo a change; Individuals need to fill the right one

By Super
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    KYC forms in Mutual Funds undergo a change; Individuals fill the right one
    In mutual funds, the Know Your Customer (KYC) forms have changed and you need to give your personal details in separate forms henceforth. According to the requirements specified by the Securities and Exchange Board of India (SEBI) you have to give your income details in a separate form to your fund house.
     

    The new change was specified by SEBI last year in December. Earlier all the details like name, address, annual income, net worth and whether you are associated with politics were to be mentioned in the KYC forms only. Due to this the form was lengthy and the KYC registration agency (KRC) kept the form with itself.

    SEBI felt the need to change the KYC form as income level and whether the investor is associated with politics are not required to be KYC compliant. Rather, income level details are required by the fund houses to ensure that the amount invested by the investor is consistent with the income level of the investor.

    The fund houses need to know the income level of the investors as they are required to submit a suspicious transaction report to the Financial Intelligence Unit regularly where the data is needed. Financial Intelligence Unit does analysis and provides the information to other sectors relating to dubious financial transactions.

    So, from now on the KYC form will be provided into two parts: Part I and part II. Part I will have the main portion and other details will be provided in Part II.

    Income levels are now captured in Part II. So you have to provide your income level in Part II form.

    Click here to read more on a few pointers to consider before choosing a mutual fund scheme.

    Conclusion

    If you want to invest in a mutual fund then you have to fill two KYC forms that is Part I and Part II. Part I is the basic KYC details and Part II that captures your income level for fund houses.

    GoodReturns.in

    Read more about: kyc mutual funds sebi
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more