look news india
Changes in SEBI rules: If you also invest money in mutual funds, then SEBI has given big relief for you. Some people were struggling with the problem of registering KYC, they will now be able to do it easily. Because SEBI has removed the rule of linking PAN-Aadhaar. This means that people who were not able to do mutual fund KYC due to not having PAN-Aadhaar link can now do it easily.
Now PAN and Aadhaar will not be required to get KYC done. Now this work can be completed without providing any additional documents. Sebi in a circular on May 14 removed the requirement of linking Permanent Account Number (PAN) with Aadhaar for investors to obtain 'KYC registered' status for mutual fund transactions. However, it should be noted that Aadhaar has to be linked to PAN for KYC valid status.
Earlier Aadhaar PAN link was necessary
In October 2023, SEBI had asked all mutual fund investors to link their PAN with Aadhaar by March 31, 2024. It was said that if the linking is not done then the KYC process will stop, due to which investment activities will stop. KYC can also be done using bank passbook or account details as proof of address.
NRI got the biggest relief
NRIs were the most affected by SEBI's directive as they are no longer required to obtain Aadhaar. The regulator requested KYC registered agencies to verify KYC of mutual fund unit holders using PAN, name, address, mobile number and email ID. The goal was to cross-check investor details with official databases such as Income Tax (IT) based on PAN and Aadhaar cards.
Use this document instead of Aadhaar!
SEBI's revised circular dated May 14 said investors can use documents such as passport and driving license to fulfill their KYC requirements. If Aadhaar is not there then any other document can be used in its place.