After 28 February, only KYC verified investors to transact in MFs

An AMFI circular will put an end to the old practice of accepting application forms and cheques alongside KYC forms said the head of operations at a mid-sized mutual fund. Investors will have to first complete their KYC and their status will have to appear as ‘verified’ with the KRA (KYC Registration Agency) such as CVL or CAMS.

A large number of investors had placed in mutual funds without completing their KYC requirements. “Something as basic as PAN card not properly scanned would invite KYC rejection from KRA. Such investor would have ‘KYC’ under process against their name,” said the operations head of a mid-sized mutual fund who did not wish to be named. “However since the money had already been taken from the investor, he would get units in the fund and would be able to transact just like a KYC verified investor,” he added.