Important update for MF Investors who completed KYC formalities before January 1, 2012

Individual Mutual Fund Investors, who completed KYC prior to Jan. 1, 2012, are required to submit ‘missing/not available’ KYC (Know Your Customer) information and complete the IPV (In Person Verification) for investing in a  new mutual fund after Nov. 30, 2012.
SEBI (Securities and Exchange Board of India) vide circular MIRSD/SE/Cir-21/2011 dated October 5, 2011 prescribed that standard KYC form to be used with uniform KYC guidelines and supporting documents and that KYC registration to be centralized through KRAs (KYC Registration Agencies) w.e.f. January 1, 2012.
This was a very welcome step as KYC process to be done only once for ALL SEBI registered intermediaries such as Mutual Funds,  Stock Brokers, Depository Participants, Portfolio Managers, Collective Income Schemes and Venture Capital Funds.
For individual mutual fund investors, A new KYC form was prescribed w.e.f. Jan. 1, 2012 and made mandatory to comply with KYC that included certain additional details such as Father’s/Spouse Name, Marital Status, Nationality, Gross Annual Income / Net worth details and In-person Verification.
For uniform compliance, SEBI vide circular MIRSD/Cir-5/2012 dated April 13, 2012 advised various intermediaries to upload KYC data of their existing customers into KRA system, highlight such ‘missing/not available’ information and update/comply with additionally mandatory information for new investments.
AMFI (Association of Mutual Funds in India) vide 88/ARN/35/2012-13 dated Aug. 17, 2012, communicated to all AMFI registered distributors about the update. It indicated that SEBI has permitted mutual funds time up to November 30, 2012 to obtain ‘missing/not available’ KYC information and complete In-Person Verification. KYC Detail change form has also been updated and Section B specially inserted for “Mandatory field for KYC done before 1st January 2012”. 
This is only a one-time requirement and needs to be completed with any one of the intermediaries. Mutual fund investors are requested to complete the formalities so that they can invest in a new mutual fund after November 30, 2012.  
For mutual fund investors, who have completed their KYC through CDSL Ventures Ltd in the old form i.e. upto December 31, 2011 has been uploaded in the CVL-KRA system with KYC Status as “MF-Verified by CVLMF”. Once additional information is submitted and verified, the status will change to “Verified by CVL KRA”. To check your status, please access, click “KYC Inquiry”, enter your PAN and Submit.
Please note that this requirement is for new folio/account with a new mutual fund and does not affect your subsequent transactions in existing folio/accounts (e.g. 5 yr SIP investment started on Nov 1, 2011). However, additional details will be mandatory to register any change in KYC information like address, phone, etc.  In case of non-individual investor, KYC needs to be done afresh due to significant and major changes in KYC requirement.

About Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) Mr. Jigar specializes on NRI Investments and Taxation. He is proud to be one of only 21 CFA Charterholders in India working as consultants. (In 2011, when he became CFA Charterholder, out of 97,173 CFA Charterholders in the World, only 697 Charterholders were in India and only 3% work as consultant; Source: He received his MBA (Finance) from University of Illinois, Chicago, USA, CPA from USA and a Chartered Accountant from India. Jigar has over 15 years of professional experience including more than 4 years with KPMG USA’s Risk Advisory Services. Currently, he provides Wealth Management and taxation consulting serving clients from USA, UK, Americas, Europe, Middle East, Asia, Africa, Australia and India.