The Association of Mutual Funds of India (AMFI) has made it mandatory for investors to update the PAN information in their mutual fund folios to be able to redeem their investments.
While mutual fund investors are required to give PAN details to complete the know-your-customer (KYC) formalities, those who invest up to Rs 50,000 per year were allowed to provide other approved proofs of identity.
The new directive comes after a recent inspection by the Securities and Exchange Board of India (SEBI) which found that redemption requests for folios were processed by mutual funds, registrar and transfer agents even when PAN details were unavailable.
How to update PAN Details in Folio?
- Investors can do it online at their respective mutual fund company's website or
- Visit a branch to submit physical copies of PAN proof and updated KYC form or
- KYC details can be updated at KYC Registration Agency (KRA) such as Cams Investor Services Pvt. Ltd and Karvy Data Management Services Ltd to enable the update of details across all your mutual funds
If PAN details are not updated, transaction requests including redemptions are likely to be rejected.