Mutual Fund KYC Validation/ Competion is necessary before investing in mutual funds. As per the recent Master circular on KYC requirements of SEBI, all mutual fund investors must have KYC status, validated or KYC Registered to transact in mutual funds. But, How do you check and validate KYC status to invest in a mutual fund?
Table of Contents
What is KYC?
KYC full form is “Know your Client”. KYC is commonly used for Client Identification. All Applicants must be KYC compliant while investing with any SEBI-registered Mutual Fund.
In simple terms KYC has all the information about the investor such as Name, date of birth, PAN and Aadhar details, address, photo, email address, phone number, parent name etc. It is further validated with supporting documents.
What are the recent changes in KYC?
a) KRAs are required to independently validate documents submitted with KYC applications against the source of issuance of the document. For example, Aadhaar should be validated with UIDAI.
b) Email and/or Mobile registered in the KYC records, must to be validated by KRAs basis delivery status.
c) If the Email and/or Mobile are found to be invalid or delivery status is negative, KYC status is changed to On-Hold, restricting both financial and non-financial transactions for Mutual Fund investors.
d) Registered intermediaries must periodically update all client and beneficial owner documents collected during the Client Due Diligence (CDD) process.
How to check KYC Status Online?
To check your KYC status please visit any of the link mentioned below:
- Visit any of the below-mentioned links
https://www.cvlkra.com/ – Go to KYC Enquiry
https://www.karvykra.com/UPanSearchGlobalWithPanExempt.aspx
- Write your PAN Number
- Enter Captcha
- Submit
- KYC Status is shown
What is the current set of documents classified as Officially Valid Documents (OVD) for KYC purposes?
A1. To complete the KYC process, an investor has to submit any one of the following Officially valid document (OVD) defined as per Rule 2 (d) of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 (PML Rules) as Proof of Identity (POI) and Proof of Address (POA):
The documents can be submitted as OVD as follows:
- passport
- driving licence
- proof of possession of Aadhaar number
- Voter’s Identity Card issued by the Election Commission of India
- job card issued by NREGA duly signed by an officer of the State Government
- letter issued by the National Population Register containing details of name and address
- any other document as notified by the Central Government in consultation with the Regulator
*Anyone of the specified document
Meaning of KYC Status – Validated/ Registered/ Rejected/On hold meaning?
KYC Validated
It means you have already deposited valid documents. The deposited documents are verified with the source also.
Thus you can continue your investments and invest in any mutual funds. Do nothing.
KYC Registered
You can continue making transactions like purchase/ redemption/ switches/ SIP etc in all your existing Mutual funds without any hassle.
But, if you want to invest in a mutual fund where you don’t have any investment. You have to do your KYC once again.
Once your KYC status changes to validated you can invest in any mutual fund of your choice without any requirement for Re KYC.
KYC on hold/ rejected
If the KYC status on mutual fund is on hold, the website will show the reason for KYC on hold/ rejected status.
The reason could be mobile or email not valid or Pan is not linked with Aadhar, deficiency in KYC documents etc you simply have to remediate the reason for KYC on hold /rejected by following the steps given.
| KYC Status | Implication |
| UNDER PROCESS – New KYC | No actions required |
| KYC REGISTERED – New KYC | No actions required |
| KYC Validated | No actions required |
| ON HOLD – New KYC | The deficient documents need to be submitted to CAMSKRA |
| KYC REJECTED – New KYC | Fresh KYC documents to be submitted to any of the KRAs |
| KYC NOT AVAILABLE | Fresh KYC documents to be submitted to CAMSKRA |
| DEACTIVATED | KYC Failed due to KYC holder death |
| UNDER_PROCESS – Incomplete/ Existing / Old KYC | Fresh KYC documents to be submitted to KRA |
| KYC REGISTERED – Incomplete/ Existing / Old KYC | Fresh KYC documents to be submitted to KRA |
| ON HOLD – Incomplete/ Existing / Old KYC | Fresh KYC documents to be submitted to KRA |
| KYC REJECTED Incomplete/ Existing / Old KYC | Fresh KYC documents to be submitted to any of the KRAs |
What type of restrictions will be made from April 01, 2024?
Following will be the restrictions per KYC type that will get applied effective April 01, 2024.
| S.No | Type of ODV used | existing KYC Status | KYC Status w.e.f. 1- 4-2024 | Implications for the investor |
| 1 | Aadhaar | Validated | Where OVD data is validated with the issuing authority, i.e. UIDAI, PAN- Aadhaar linking done, Email and/or Mobile validated KYC Validated. | 1. No change. 2. Investors can continue to transact with the existing funds or invest in new Funds |
| 2 | Aadhaar (Physical) | Registered | Where Aadhaar OVD data could not be validated with the issuing authority i.e. UIDAI, PAN-Aadhaar linking seeded and Email and/ or Mobile is validated KYC Registered. | 1. To invest in a new fund, an investor must submit a fresh Aadhaar copy where QR code is scannable and validated. 2. Existing investors can continue All financial transactions where investor PAN is available and KYC status is Registered / Validated as of 31st March’24 |
| 3 | Non- Aadhaar OVDs (Allowed OVDs). | Registered / Verified. | Where the proof cannot be validated with the issuing authority and Email and/or Mobile is validated – KYC Registered. | 1. Existing investors can continue all financial transactions where investor PAN is available and KYC status is Registered / Validated as of 31st March’24 2. To invest in a new MF,The Investor need to submit the allowed OVD with KYC modification requests with the respective KRA. 3. Investors should be requested to complete the KYC process using Aadhaar as OVD through Online mode and get successfully validated. |
| 4 | Non- Aadhaar OVDs (Allowed OVDs). | Registered | Where the proof cannot be validated with the issuing authority and Email and/or Mobile is not validated – KYC On-Hold | 1. Submit a valid Email and/or Mobile as a KYC modification request with the concerned KRA. 2. complete the KYC process using Aadhaar as OVD through Online mode and get successfully validated. |
| 5 | Deemed OVDs (other than Allowed OVDs). | Registered | Where the proof cannot be validated with the issuing authority and Email and/or Mobile is validated – KYC Registered. | 1. Existing investors can continue all financial transactions where investor PAN is available and KYC status is Registered / Validated as of 31st March’24 2. To invest in a new MF, The Investor need to submit the allowed OVD with KYC modification requests with the respective KRA. 3. Investors should be requested to complete the KYC process using Aadhaar as OVD through Online mode and get successfully validated. |
| 6 | Deemed OVDs (Other than Allowed OVDs). | Registered | Where the proof cannot be validated with the issuing authority and Email and/or Mobile is not validated – KYC On-Hold. | 1.All financial and select non-financial transactions will be restricted unless remediated documents are submitted. 2.Submit valid Email and/or Mobile or PAN-Aadhaar link to be made and confirmation to be submitted to the existing as well as with new SRI/MF and uploaded as KYC modification request with the concerned KRA. 3.Investor should be requested to complete KYC process using Aadhaar as OVD through Online mode and get successfully validated, then there will not be any requirements to do re-KYC and avoid submission of KYC documents to each of the new SRI/MF. |
| 7 | Non-OVDs (other than listed above). | Registered | KYC On Hold | 1.All financial and select non-financial transactions will be restricted unless remediated documents are submitted. 2 Do re-KYC in the existing as well as in new SRI/MF using the current set of prescribed OVDs. 3. Investor should be requested to complete KYC process using Aadhaar as OVD through Online mode and get successfully validated. |
| 8 | Invalid contact details [Email and / or Mobile] – irrespective of OVDs submitted. | Registered | KYC On Hold | 1.All financial and select non-financial transactions will be restricted unless remediated documents are submitted. 2. The investor will have to provide new contact details before transacting with existing SRI/MF. 3. Investor should be requested to complete KYC process using Aadhaar as OVD through Online mode and get successfully validated, then there will not be any requirements to do re-KYC and avoid submission of KYC documents to each of the new SRI/MF. |
Conclusion
-vBy all means, you should have KYC Validated status to transact freely in mutual funds. In case if the status is registered, you need to do REKYC in order to buy a new mutual fund scheme.
