In order to bring uniformity in the Know Your Customer (KYC) process in the securities market and develop a mechanism for centralization of the KYC records and also to avoid duplication of KYC Process across the intermediaries in the securities market; SEBI vide Circular No. MIRSD/SE/Cir-21/2011 dated October 5, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011 introduced the concept of KYC Registration Agency (KRA) effective January 01, 2012.
Apart from KYC, it is mandatory for intermediaries including mutual funds to carry out In-Person Verification (IPV) of all its new investors. The IPV carried out by any SEBI registered intermediary can be relied upon by the Mutual Fund. NISM/AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for Mutual Fund investors. Further, in case of any applications received directly (i.e. without being routed through the distributors) from the investors, the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.
Investors can submit the common KYC Application Form along with all necessary documents as prescribed in the KYC Application Form with any SEBI registered intermediaries including mutual funds. KRA shall send a letter to the investor within 10 working days of the receipt of the initial/updated KYC documents from the Mutual Fund, confirming the details thereof.
In other words, investors will have to:
Download the KYC form: Individual Investor; Non Individual Investors
- Attach the documents evidencing Proof of Identity and Proof of Address
- Complete IPV from any of the following:
- NISM/AMFI certified distributors who are KYD compliant
- Scheduled Commercial Banks (in case of any applications received directly)
- Submit the KYC form along with necessary documents at the nearest Investor Services centre or any other intermediaries of KRA's as mandated by SEBI.
Upon receipt and verification of the above documents, a KYC acknowledgement will be issued to each applicant
Existing KYC compliant investors of the Tata Mutual Fund can continue to invest as per the current practice. However, existing investors are also urged to comply with the new KYC requirements including IPV as mandated by SEBI.