Mutual fund investors are asked to complete the ‘know your customer’ (KYC) procedures, before opening an account and even subsequently when the regulator mandates it. Here’s what you must know about KYC formalities.
Why do you need to change your KYC?
Many of us move cities to seek jobs. Sometimes, we get transfers. Some of us even migrate to other countries. Such changes – be it of name, address or residency status – need to be captured in the KYC document for compliance purpose. The KYC details once done can be changed by following the prescribed process.
Apart from my mutual fund investments, I also have a demat account and a few bank accounts. Does a change in KYC affect my other holdings as well?
No, it doesn’t. The same gets reflected in your mutual fund folios.
Your KYC in banks and demat accounts does not change when you opt to change your mutual fund KYC.
A central KYC across all financial products, overseen by multiple regulators, is still some time away though preparations have already begun.
Which form and documents should I use?
To update your mutual fund KYC, you will have to fill ‘KYC details change’ form. You can get this form from the website of mutual funds and registrar and transfer agents (RTA) such as CAMS and K-Fin.
Self-attested copy of PAN is a must with all KYC updation forms. After filling up the basic details such as name and PAN number, choose the field which you want to change. For example to change your address, you must give a self-attested copy of any one of passport, ration card, electricity bills, latest bank statement clearly stating name and address of the account holder. In case the address for communication and permanent address differ, then the supporting documents for both need to be submitted.
You have to submit this form to the office of one of the mutual funds or RTAs. Original documents are required for verification of self-attested copies. You can also use attested copies from competent authorities mentioned on the instructions page.
Can you change your KYC online?
No, you cannot. If you are doing your KYC process for the first time ever, you can do it online. In that case, you need to upload your details and documents on the website of a mutual fund. Then, an in-person verification is also done through a video call, to ensure you are a real person and alive.
But if you need to change (update) your KYC, you have to go offline. Updation of KYC takes place within 7-10 days of submitting the form.
If I do KYC with one mutual fund, will it get automatically updated with all other houses?
When you update your mutual fund KYC with one fund house or with one RTA, the same gets reflected with all mutual fund houses, irrespective of the RTA that services the fund houses.