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Securities and Exchange Board of India (SEBI) has advised AMFI to review the existing registration procedure for Mutual Fund Distributors and initiate necessary action to strengthen the same in order to ensure correctness of information furnished in the registration application and also to have in-person verification of the ARN holders.
AMFI has therefore introduced KYD for distributors/agents w.e.f. Sep 1, 2010. The KYD procedure consists of document verification and biometric process. To start with, KYD norms will be applicable for fresh ARN registration and ARN renewal effective from September 1, 2010. The existing ARN holders would also be required to comply with KYD norms within 6 months i.e. by end of February 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements. The distributor is therefore required to apply for KYD simultaneously along with the application for registration of ARN.
Please
CLICK HERE
for detailed process note and KYD application form for -
Individual
Non-Individual
Mutual Fund investments are subject to market risks, read all scheme related documents carefully