After the association of Mutual funds of India has asked fund houses to link existing fund folios with Aadhaar by December 31, 2017, it has said that no new folios can be added without obtaining Aadhaar details of investors.
Nonetheless investors at their discretion can invest in MFs and fund houses shall have to update such details with the folio.
Non-Aadhaar compliant mutual fund account of customers shall cease to operate from the new calendar year which means no new mutual fund transaction can be performed in these accounts. The ruling is in line with the changes in the prevention of money laundering act (PMLA) Rules 2017.
For the linking of Aadhaar number with mutual fund folios, investors can approach registrar and transfer agents including Karvy and CAMS.