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Market regulator SEBI has made new KYC mandatory for mutual fund investors. Its March 31 deadline has already passed, but investors have been given relief from account blocking. Now a big update has come out regarding documents on KYC.
Changes implemented from April 1
SEBI has made some changes in KYC documentation. According to the changes implemented from the beginning of the new financial year i.e. April 1, 2024, now investors can get new KYC done with some selected documents only. Many investors used documents like bank statement or utility bill to get KYC done. In a shock to them, the regulator has removed bank statements and utility bills from the list of valid documents.
These documents will be accepted
- Aadhar card.
- Passport.
- driving license.
- Voter ID Card.
- NREGA job card.
- Any other document approved by the Center under agreement with the regulator.
These documents will not work
SEBI has told mutual fund distributors that now documents like bank statement or utility bill will not be accepted for KYC. In KYC, the investor has to fill a KYC form, along with which documents of identity proof and address proof have to be submitted.
This relief was given earlier
Before this, mutual fund investors have already got some relief in the matter of new KYC. Earlier it was being said that the mutual fund accounts of investors who do not get the new KYC done by March 31 will be blocked. Now giving relaxation in this, it has been said that even if an investor is not able to get the new KYC done by March 31, he will still be able to transact in his mutual fund folio. If new KYC is not done by March 31, 2024, then the mutual fund accounts will not be blocked but will be put on hold. As soon as investors undergo fresh KYC, their mutual fund accounts will be removed from hold.