Have you got your KYC verified as per the new changes? Investments in mutual funds should be updated accordingly

KYC for investment: KYC verification is required for any investment, savings or banking transaction. Market regulator SEBI has announced new changes for KYC from April 1, 2024. Information about which is necessary, otherwise investors may face obstacles in new investments and future financial transactions in mutual funds.

According to the new rules, investors whose KYC status is verified and registered will continue to invest in mutual funds. But if the necessary information is not verified or is incomplete then their old investment will continue, but they will not be able to make new investment. And will not be able to take it back. Asset management companies or brokers cannot enter into new transactions or new investments.

KYC plays a vital role in verifying the true identity of the customer as well as providing protection from the challenges and risks inherent in financial transactions. Every financial institution carries out financial transactions only after KYC verification.

These details have to be submitted for KYC

To get KYC verified, investors will have to submit KYC form online or offline. In which identity card and address proof documents will have to be presented. In which any one of the documents including Aadhaar, Passport, Driving License, Voter ID Card, NREGA Job Card and other documents can be presented. From now on, utility bills or bank statements will not be considered valid for the KYC process.

Aadhaar based e-KYC

Investor can do KYC online using Aadhaar card. In which it is necessary to link Aadhar card with mobile number. Also investors should have necessary camera, location, microphone access permissions. In which self-attested PAN card, passport size photograph and signature will have to be submitted.

Investors who have completed KYC will have to get updated again.

Investors who have earlier done KYC with the help of utility bill and bank statement will have to do KYC verification again as per the new changes. Because, from now on utility bills and bank statements will not be considered valid. Additionally, investors who have invested in mutual funds before KYC became mandatory will also have to compulsorily update KYC for redemption or fresh investments.