look news india
Mumbai: Mutual fund investors, especially NRIs, are facing confusion over non-KYC compliance due to lack of PAN-Aadhaar linking. He has got relief for some time. Capital markets regulator SEBI has relaxed KYC norms by temporarily removing the requirement of linking PAN with Aadhaar for KYC registered status for mutual fund transactions.
According to this relief from SEBI, all mutual fund investors will now be able to continue investing immediately without submitting additional documents.
Although linking Aadhaar with PAN is still required to obtain KYC valid status, in October last year, the Securities and Exchange Board of India (SEBI) required all fund houses to provide officially recognized documents like Aadhaar, passport, driving license etc. There was a need to provide. Instructed to re-verify the Know Your Customer (KYC) status of its customers based on Water ID.
The regulator has made it mandatory for all mutual fund folio holders to link their PAN and Aadhaar before March 31, 2024. As the deadline passed, more than 1.3 crore accounts faced temporary suspension as a result of SEBI's directive. In the language of mutual funds, these accounts are called on-hold accounts.
Mutual fund customers with on-hold account status are not allowed to sell or buy units. NRI SEBI's directive has had the biggest impact on those investors who do not need Aadhaar. SEBI, in a revised circular dated May 14, has removed the ban on linking PAN with Aadhaar for mutual fund transactions.