Updated KYC norms: what mutual funds investors need to know
Revision in KYC Norms applicable for RI/NRI/ UBOs (eg. Karta, Director, Partners) w.e.f. April 1, 2024.
Following recent SEBI regulations, KYC status is now categorized as either "KYC validated" or "KYC registered" based on verification of your details. "KYC validated" offers more flexibility and requires linking your PAN card with Aadhaar. "KYC registered" allows investment with us currently but may require further verification for future investments with other companies.
What is KYC?
KYC (Know Your Customer) is a process that helps us verify your identity and address to prevent fraud and money laundering. It's a crucial step for anyone investing in mutual funds.
What are the latest changes?
SEBI regulations now categorize KYC status as either "KYC validated" or "KYC registered" based on document verification.
Here's a breakdown:
- KYC validated: Offers more flexibility. Achieved by linking your pan card with aadhaar. allows investment across any Asset Management Company (AMC).
- KYC registered: Achieved by completing KYC with a valid Officially Valid Document (OVD) like aadhaar, pan, passport, driving license, or voter id. Allows investment in shriram mutual funds only (for now).
How to check your KYC status
Visit any one of the kra websites listed below:
- CAMS KRA
- NDML KRA
- Karvy KRA
Check your KYC status now - https://www.camskra.com/
How does this impact you?
Shriram amc investor:
Check your KYC status online through your account.
- Validated: Invest seamlessly!
- Registered: No action needed for shriram amc investments. re-KYC required for future investments with other amcs.
- On hold or rejected – Need to redo the KYC for any further transaction. You can do it at https://kyc.shriramamc.in/ or CAMS KRA
New shriram amc investor:
- Complete KYC online using a valid OVD during the investment process.
- If KYC is not "validated," complete KYC while investing
The table below outlines the steps based on your situation:
| KYC Status | When | Impact on Mutual Fund Investments | Remediation Requirement |
|---|---|---|---|
| Validated | Your original KYC is based on Aadhaar. Mobile number and email address have been validated by KRA. | Seamless investing and redemption across all fund houses. | No action required. |
| Registered | Your original KYC is based on an OVD except Aadhaar. Mobile number and email address have been validated by KRA. | No impact on existing investments. However, you cannot invest with other fund houses. | No action required for existing investments. Need to re-do KYC to invest with other fund houses |
| On Hold | Your original KYC was based on a non-OVD, and/or mobile number and email address are invalid, incorrect, not in use, etc. 10-15 days post KYC put on-hold, status becomes rejected. | Debarred from all mutual funds transactions. | Re-submit KYC documents online/offline. |
| Rejected | 10-15 days post KYC put on-hold, status becomes rejected. | Debarred from all mutual funds transactions. | Re-submit KYC documents online/offline. |
How to re-do KYC
Online:
Follow these five steps to re-do your KYC online:
- Head to CAMS KRA if you are an existing customer (new customers can head over to the official Shriram Mutual Funds investment page for the KYC validation process).
- Enter your pan and enter the otp received on your registered mobile number and email address.
- Choose one of the listed AMCs for which you want to update the KYC details. Your KYC recorded will be updated for all the AMCs automatically.
- Modify the necessary information and upload relevant documents.
- Review the entered details and click on “Submit” to completed the KYC process.
Offline:
Submit the KYC form and a physical copy of your Aadhaar card to any fund house you invest with or want to invest with.
Note: Physical KYC validation might not go through due to several reasons, a few of which are listed below along with the possible solutions—
Unreadable aadhaar qr code: Scan your aadhaar qr code and write the Aadhaar Verification Reference number on the copy submitted for KYC.
Aadhaar data mismatch: Ensure your Aadhaar data matches the issuing authority (UIDAI).
Unlinked pan-aadhaar: Link your pan card with aadhaar (unless NRI). NRIs need to declare their status on the income tax department website.
Email/Mobile validation failure: Refer to the links provided earlier to verify your email and mobile number.
KYC-aadhaar data mismatch: Double-check that your name, date of birth, gender, address, and pin code match between your KYC and aadhaar database.
On-screen confirmation not guaranteed: A successful screen confirmation doesn't guarantee KYC validation.
These are common reasons, but individual pan validation processes might encounter other challenges.
Documents required for offline KYC
Given below are a list of documents required for a smooth offline KYC validation process:
Resident individuals:
- Duly filled KYC form
- Passport-sized color photograph
- Pan card copy
- Officially Valid Document (OVD) - Preferably Aadhaar Card (downloaded masked copy recommended)
NRI individuals:
- Duly filled KYC form
- Passport-sized color photograph
- Pan card copy
- Aadhaar Card (downloaded masked copy recommended) OR Any other OVD as listed
- Passport copy
- Overseas address proof
Officially Valid Documents (OVD):
- Passport
- Driving license
- Proof of possession of aadhaar number
- Voter's Identity Card (issued by Election Commission of India)
- NREGA job card (duly signed by a State Government officer)
- Letter issued by the national population register containing details of name and address
- Any other document notified by the Central Government in consultation with the regulator
Tips for a smooth KYC experience:
- Use aadhaar as your OVD for "validated" KYC status, avoiding re-KYC with other amcs.
- Ensure your e-Aadhaar/m-Aadhaar or qr code is readable during KYC.
- Link your pan with aadhaar (unless NRI).
Need help?
Contact us at 1860-419-1200 or customercare@shriramamc.co.in
