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KYC ensures you don't have to submit documents again and again usually, every time you invest in mutual funds you have to submit identity proofs - such as permanent account number (PAN) address proof, photo ID, etc - with each investment application.
If you find this an unnecessaryhassle, then help is at hand. CDSL Ventures has a procedure wherein you need submit to all your essential documents just once, and the verification of your identity is complete. In financial jargon, this is called Know Your Customer (KYC), and it doesn't come with any fee attached. "All mutual funds have made special arrangements with CDSL Ventures Ltd (CVL), a wholly owned subsidiary of Central Depository Services Ltd," says the Association of Mutual Funds in India (Amfi).
Here's an FAQ on the process:
Who needs a KYC?
Anyone who wants to invest in mutual funds needs a KYC. Also, if you are staying abroad and will have someone else investing on your behalf via of a Power of Attorney (PoA), then your PoA holder too will have to be verified under KYC. For investments on behalf on minors, the KYC of the parent or guardian is enough. KYC through CVL is mandatory for all those who want to invest an amount higher than Rs 50,000 at one go in mutual funds.
Where is the KYC form available?
The forms are available on the website of CDSL (www.cdslindia.com) and Amfi. It can also be downloaded from websites of any of the mutual fund companies. If you are investing through a distributor, he too may have the forms.
Where can I submit my form?
CVL has nominated various companies to help investors complete this procedure. The list of these companies is available on the websites of Amfi (www.amfiindia.com) and CVL (www.cvlindia.com). There are around 700 branches of various financial services companies where you submit the KYC form and required documents. Some companies that feature in the list include UTI Technology, Sharekhan, Motilal Oswal, Religare Securities, Kotak Securities, Karvy Computershare, India Infoline, IL&FS, Geojit Financial Services, Deutsche Investor Services, CAMS, Bajaj Capital, Bonanza Portfolio, BRICS Securities, R R Financial, Networth Stock Broking etc. Do note that only select branches of these companies will be able to help you, so it is better to check the list of branches accepting KYC forms.
What documents must I submit?
You will need a PAN card - it is mandatory for investing in all mutual funds, a proof of your identity, address and photographs. These documents must be carried in original as well as a self-attested copies. The original will not be taken by the branch, but returned after verification with the self-attested copies. If you don't want to carry the originals, take notarised copies of the documents. Also, in case you are unable to go to the branch, a representative can submit the form and documents on your behalf.
When do I get the acknowledgment?
You will get an acknowledgement across the counter at the time you submit the KYC form. In case the documents are inappropriate or some details are missing, CVL will write a separate letter to you. CVL says if you do not receive any communication from CVL in 10 working days after you have submitted your documents, you may use the acknowledgement to register your PAN and KYC status with mutual funds.
How do I invest after KYC completion?
After you have completed the procedure and got an acknowledgment from CVL, there is no need to submit the same documents if you are applying to invest in a mutual fund. Just the copy of the acknowledgment provided by CVL is enough.
In case you have already invested in funds then you will have to tell each of your fund houses about the acknowledgement number. Once your fund house updates your details in its database, your account statement will state your "KYC Registered" status.
How do I update any change in my personal details?
You can do this by going to CVL. There a separate form for notifying changes in name, address, signature etc. The application can be given along with a copy of the old KYC acknowledgement and the document supporting the change. The changes can be reflected in 7-10 working days.
What if the fund house refuses toaccept the changes?
You can direct the official to the CVL website. There, insert your PAN in the page that opens after selecting "Inquiry on KYC". If your KYC is completed with CVL, the status will show "Verified".
Source : DNA Money
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