Know Your Customer (KYC)
To ensure compliance with the Prevention of Money Laundering Act, 2002, and SEBI and AMFI guidelines on the subject of AML (anti-money laundering), investors have to undergo KYC (Know Your Customer) formalities from CVL (CDSL Ventures Limited). Upon furnishing the required documents, CVL issues KYC Acknowledgement. The KYC formalities have to be completed for all mutual fund transactions viz. (Purchase, Switch-in, Systematic Investment Plans, Systematic Transfer Plans, etc.), irrespective of the transaction amount. If the purchase / transaction application is not accompanied by KYC Acknowledgement, the same is liable to be rejected.
In order to make the data capture and document submission easy and convenient for the investors, Mutual Fund Industry has collectively entrusted the responsibility of collection of documents relating to identity and address of the investor(s) to an independent agency (presently CDSL Ventures Limited) which will act as central record keeping agency ('Central Agency'). As a token of having accepted the documents for identity and address of the investor(s) and for efficient retrieval of records, the Central Agency will give an acknowledgement letter to each investor who submits an application and the prescribed documents to the Central Agency.
With effect from January 01, 2011 KYC compliance is mandatory for all categories of investors irrespective of the amount invested for the following transactions:
• New / Additional Purchases
• Switch Transactions
• New SIP/ STP/ Flex STP/ FlexIndex/ DTP registrations received from the effective date
• Any SIP/STP/Trigger related products launched subsequently