Crime on the Rise, Mutual Fund Investments Need KYC

  • Richard Marley
  • December 14, 2020
  • 2 minutes read
  • 3768

Know Your Customer (KYC) is to be implemented on all financial market-related investments. In order to make any investments, the mutual funds need to make sure of the KYC regulations in regards to investors.

L&T mutual funds have lost 49.83 lacs to fraudsters while SBI mutual funds have lost 10.96 lacs to fraudsters.  

This standard process must be implemented on all mutual fund investments across fund houses. The records of KYC are managed by KYC Registration Agencies, these agencies are registered by the Securities and Exchange Board of India. The KYC process for a mutual fund is allowed to be carried out online or at any KYC Registration Agency (KRA) office. 

In order to check if the KYC regulation procedure has been completed before, one can go to the fund house website or KRA website and enter PAN details. KYC regulation status appears once the PAN details are entered. The status includes whether it’s complete or not, or any modifications are required or not. 

It is highly recommended to keep the records like mobile number, bank statement, address, etc. updated in the KYC records details. If any changes are required, the KYC details change form must be submitted with a copy of all the important documents. 

Method of video KYC has now been allowed as well. The mutual fund in investment can now comply with KYC regulatory demands through the method of video-based identification interviews. If the investor chooses video KYC, the investor is required to upload scanned images as identity proof, address, and signatures. However, if they choose to do the KYC process offline, they must fill a KYC form and submit proof of identity with the address. In case of eKYC, the maximum amount per annum per mutual fund is limited to INR 50,000