How to get KYC Verification

As an existing or potential investor, one might have heard about KYC Verification. But, not too many may understand the significance of it or how to get a KYC verification done for oneself. We herein explore the concept of KYC in greater detail and also delve into some of its nuances that most may not be familiar with.

What is KYC

KYC is an acronym for “Know Your Client” and its requirement arises from the Prevention of Money Laundering Bill of 1999. The objective of the bill was to ensure that every entity be it a bank, mutual fund or any other company dealing with clients’ money should be made accountable for knowing and verifying the identity of its customers. Conforming to this, every financial transaction in our country requires the proof of identity and the proof of address to be produced. Most of the banks, broking firms and companies accepting public deposits have a KYC application form attached to their own application forms which the client has to fill up while investing. But this KYC compliance is valid only for that entity and the customer has to repeat the process for different transactions with different entities.

For investments in Mutual Funds, the Association of Mutual Funds of India has simplified this process by facilitating a centralized platform through CDSL Ventures Ltd (CVL) to carry out a KYC compliance procedure which would be applicable to investments in all the Mutual Funds. With effect from 01 January 2011 it has been made mandatory for every investor desirous of investing in Mutual Funds to complete the KYC Process irrespective of the amount. Once done, the customer just has to attach a copy of the acknowledgement letter while investing for the first time with each Mutual Fund.

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Application form

The KYC application form is available online and can be downloaded from –

The websites of any of the Mutual Funds

The AMFI website – www.amfiindia.com

CDSL Ventures website – www.cvlindia.com

Application forms are available under two categories-

Individuals– Resident individuals and Non-Resident Individuals

Non-Individuals–For Private/Public Ltd, partnerships, HUF, FIIs, societies, banks, trusts, govt. organizations etc.

 

KYC Documents required

  • A recent passport size colour photograph
  • Copy of PAN card
  • Copy of address proof (list of valid documents is given in the form)

If the application form is submitted without complete or proper documentation, it is liable to be cancelled or rejected.

 

Where to submit Form

The application form along with the photocopy of the required documents can to be submitted at any of the nearest Points of Service (POS) outlets listed in the following URL.

http://www.amfiindia.com/poskyc.aspx

The customer has to also carry the originals along for verification. In case the client is unable to personally visit the POS for some reason, he can send the documents through his representative.

KYC Verification and Processing

Once the documents are verified, the investor will receive a letter confirming KYC compliance. It may take 24 hours to a week to receive the letter. In the interim, the customer can check KYC status online using this URL.

http://www.cvlindia.com/inquiry_kyc01.asp

The PAN no is to be entered, and if the processing is on, the status message “KYC STATUS PRESENT IN PROCESS” is displayed, and if the verification is complete, the status shows as “VERIFIED”.

On receiving Acknowledgement letter

Once the KYC acknowledgement letter is received, a copy of the same has to be sent to all the Mutual Funds where the customer has invested. All future investments in any mutual fund for the first time should be accompanied with a copy of this letter.

While there is no doubt that implementation of KYC for mutual fund investment protects investors’ interests, surely there is scope for further standardization. The KYC issued by CVL cannot be used for other transactions like opening a bank account, fixed deposit, or for real estate transactions. A common KYC application form for all investments could be a feasible solution

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Comments

  1. Nine Million Dollars says

    Hi Anil

    Thats a rare case. All you can do is to visit RelianCE mf Office again and repeat the process

  2. anil kumar awasthi says

    i invested in reliance MF ,a minor error observed in my postal address Parivar society No2 is mentioned in my address as Parivar society |ii
    but i can’t received my hard copies of statement . My address is same Parivar society No2
    since 15 year but they (Reliance MF) are not make necessary change even after submitting my all address proof( light bill/phone bill etc)
    Now what can i do

  3. Nine Million Dollars says

    Hi T Surya
    You need to get in touch with nearest CAMS office or the place where you applied for KYC

  4. T Surya Narayana Rao says

    I have already done KYC verification and also received the letter for the same. However, the letter is misplaced. Please advise on how to obtain a duplicate of the same.

  5. Nine Million Dollars says

    You can visit nearest CAMS office OR any renowned fund house like HDFC MF to get your KYC

  6. K R CHAUHAN says

    I am not able to get kyc verification my PAN No. is AAKPC5400G Will you please help me about the procedure?

  7. Surendar Singh Yadav says

    I am holding ICICI PRUDENTIAL FOCUSED BLUE CHIP MUTUAL FUND VIDE FOLLIO 5740349/42 I want to change the address in mutual fund as well as in KYC. My Pan Card no is AAUPY8125C . Please let me know the procedure for change of address Please send the reply on my E.mail address.

  8. Nine Million Dollars says

    Dear Kalam
    We are into providing information, but sorry to say we are not into making arrangements for KYC address change. Contact CAMS office

  9. MD. KALAM ANSARI says

    I have talked to phone (02261216910) for address correction in my KYC on 03.10.2012 at 3.00P.M. My PAN Card No. is AUSPA5376R. Please send the reply on my E-mail address and send a hard copy of address correction KYC copy on my address.

  10. Dhawal Sharma says

    @sunder Raja,

    If your KYC status is showing “Front office and physical verification done”, broadly it means that your KYC process is not yet completed in its entirety. It means that the process is in WORK-IN-PROGRESS status and will be completed shortly. But even with this status, you can make fresh investment in any of the mutual fund scheme without any problem.

    Regarding change of address, the easiest way is to get it done through your distributor, the person/institute (Bank or Broking house) from where you have purchased your fund. You have to submit new address proof as supporting document and it will be updated..

    Regards,
    Dhawal Sharma

  11. sunder raja says

    i submitted my KYC application way back in july 4th. thru UTI. the status is showing Front office and physical verification done still. What done it mean???????. My KYC is thru/correct or yet it is pending. Now shortly i am changing my address.how can I update???

    sunder

  12. Nine Million Dollars says

    Hello Bishambhar

    You need to get in touch with CAMS office and they surely guide you in the right direction

    Nine Million Dollars

  13. Nine Million Dollars says

    Hi Avesh

    You need to contact cvlindia.com OR nearby CAMS office or from the plac you have applied for address change to get it done asap

    Nine Million Dollars

  14. Avesh Kumar says

    I have applied for the address change in KYC in the month of July 2012. My Pan Card no is AZPPK1098Q. But no information has been received so far address change in KYC .Please send the reply on my E.mail address and send a hard copy of address change KYC copy on my new address.

  15. Nine Million Dollars says

    Hi Arulraj

    You can visit your nearest HDFC Office or nearest CAMS office where you can get your things done.

    Nine Million Dollars

  16. Arulraj says

    I have asked HDFC to change my address in KYC and they have confirmed the same done.
    However I did not get a copy of the same with new address.
    How do i get a print out of the saME WITH CURRENT ADDRESSS??

    ARULRAJ

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