Know Your Customer norms for Mutual Fund investors
Mutual Fund
‘Know Your Customer’ norms are being implemented strictly by banks and mutual fund companies. Therefore investors should give their complete details to the mutual fund company. Otherwise there will be problems in the investment transactions.
SEBI has decided that the transactions of those investors who do not follow the Know your customer norms should not be allowed. But many of the investors are not following this. Investors who made one time investments two to three years back should not delay to complete the norms of Know Your Customer. Otherwise they cannot take back their investments in future.
Know Your Customers application forms can be obtained from CVL website or from the mutual fund office where the investments are made. Full name, age, job and other details of the investors should be filled and the duplicate documents of address proof and PAN card should be attached to the KYC application. This has to be submitted at the CVL service centres personally or through an agent. NRIs also have to complete the KYC norms.
If the customer once obtains the Know your Customers acknowledgement, they can use the copy of it for new investments also. The KYC acknowledgement should be given to the old mutual fund company also and they will change the records accordingly. After this the investors can continue their investments without any problem.