Know-your-client (KYC) process – Query bank.
Updated on: December 20, 2007
Sr No Issue Response
1. After obtaining a KYC acknowledgment, will the KYC compliance be updated in the folios automatically? Will CVL inform the mutual funds for updation of KYC in the investor folios?
KYC Compliance will not get automatically updated in the folios in mutual
fund. The investors have to separately inform the fund/RTA about their KYC Registration along with KYC acknowledgements. Your KYC compliance status will be updated across all folios where your PAN number is registered and for any other folios you request.
2. How can an investor update his KYC compliance status in his folios?
Investors can update their KYC compliance status in their folios by:
a. Making a written request to update their KYC process to each fund
house attaching a copy of their acknowledgements.
b. enclosing KYC acknowledgement with additional purchase
KYC compliance status will be updated across all folios where your PAN
number is registered and for any other folios you request
Please be advised that all holders in a folio must be KYC compliant in
order to be able to invest Rs 50,000 or more in that folio.
3. Can investor provide KYC compliance
details with redemptions and switch
transactions
Investors are requested not to provide KYC compliance details with
redemption or switch transaction, as it is possible the same may not be
updated in the folio.
Investors are requested to make a written request as noted in question 2
above
4. In case of schemes investing in other MF
schemes (like ULIPs etc), who is to
complete the KYC process
Mutual Fund to complete KYC.
5. Clarification in a similar scenario for
Insurance companies which invest under
various scheme names
Insurance Company to complete KYC.
6. Clarification in case of Venture Funds which
invest under various scheme names.
Main Venture Fund to complete KYC.
7. FII clarification to Custodians. Proof of ID: SEBI registration for FII and letter of approval for the sub
account.
Proof of address: POA between Sub account/ FII and Sub custodian.
Sub Custodian Registration number.
List of authorised signatories duly attested.
The sub custodian can sign the KYC application form.
In addition, the Gross Income details requested for will be the Gross Net
Assets in
8. Address proof in respect of Army personnel,
who provide '56 APO' etc. as address for
correspondence
For Individuals with an Army Address (’56
Officer / Photo copy of Army Id card duly attested can be accepted as proof of address.
9. What are the constitution documents required
in case of unregistered Partnerships, Trusts,
etc.
Alternate documents in case the Partnership is not registered.
In case of unregistered Partnership firm, following two documents to be
taken:
1. The Managing Partners’/Trustees’ name to be mentioned under
contact name in the MAF. Any officially valid document viz.
Passport copy, Driving license, PAN card, etc. of the person whose
name is stated under contact name to be obtained.
2. Copy of the bank statement which will have the name and the
address of the Partnership firm/Trust.
Both the above documents to be verified with the original or produced as
attested true copy.
10. Spouse/Child/Dependent of an NRI/PIO with
“NRI/PIO” who does not have a proof of
address
Can produce the proof of address of the sponsoring husband with
documents supporting the relationship such as marriage certificate/Visa,
etc
We have now extended this to all, not just NRI / PIO
In case you desire to register an address in
must provide proof of address in your own name or that of an immediate
relative with an additional document evidencing the direct relationship with
such person i.e. Parent/Spouse/Child.
11. Attestation of corporate documents
Corporate documents can be self attested by Director/Company
Secretary. All other entities’ documents to be attested by a Notary, etc.
12. Identity document in case of an NRI should
necessarily be a Passport or does he have a
choice of giving any of the other docs
suggested Proof of Address - are
international DL, Electricity bill, Bank statement etc acceptable in case of
NRI/PIOs?
Passport copy and PAN are mandatory.
For attestation: The documents can be attested by a Consular Officer or
an authorized official of overseas branches of scheduled commercials
banks registered in
(including attestations / certifications) towards proof of identity or address
are in a foreign language, please have them translated into English and
submit them.
13. Can any document issued by the local
authorities (eg: foreign bank, utility bills,
international driving license) be acceptable as
address proof for NRIs?
Yes
14. Address proof for both Indian and overseas
address to be provided by an NRI - Do both of
them need to be in the NRI/PIOs name. (In
some cases the Indian address proof will
generally be in the relatives name as NRI
does not stay at the address).
Local address not mandatory. If given, the name has to match, or must be
of a relative as per qs 10 wth proof of relationship?.
15. In case of Merchant Navy NRIs, the overseas
address proof is not available. What is the
alternative documentation that can be taken?
Mariners’ declaration or Certified Copy of CDC (Continuous Discharge
Certificate) is to be produced.
16. Also what is the acceptable
notarization/attestation for the NRI/PIOs e.g.:
an embassy or a bank abroad.
For attestation: The documents can be attested by a Consular Officer or
an authorized official of overseas branches of scheduled commercials
banks registered in
(including attestations / certifications) towards proof of identity or address
are in a foreign language, please have them translated into English and
submit them
17. Additionally, which pages on MOA and AOA
need to be attested? is each page to be
attested? same for partnership deed etc.-
The page giving details of the registration of the entity has to be attested.
In case of Partnership deed, the first page (which will bear the stamp and
the registration details) and the last page (which will have the signatures)
have to be attested.
18. Document evidencing authority to invest" in
partnership firm - will a letter signed by all
partners authorizing one or more partners to
invest on the firm's behalf do?
Yes
19. What about proprietorship firm documents? Individual.
Which application form to be filled hereindividual
or non-individual
20. Is there a standard format for deed of
declaration for HUF or any format stating HUF
members and co-parcenors will suffice
Alternate documents to be obtained for HUF in case of non availability of
deed of declaration:
HUF Pan Card
Karta’s name to be written under the contact name in the non-individual
MAF.
Any officially valid document of the Karta whose name is mentioned in the
MAF under contact name.
21. All docs for non-individuals need to be on a
letterhead or a letter format with
firm/company stamp suffice
Any one
22. PAN is mandatory for all investors. What
does one do for a person where PAN is not
available?
Cannot complete KYC or invest in Mutual Funds. If the PAN number is
available and the PAN card is lost, investor to attach a copy of the
acknowledgement for request of duplicate PAN card.
23. If client does not possess the KYC
acknowledgement, can a query be done
online for enquiries and a screen print of the
same be attached for investment?
Please call the CVL Helpdesk at : 022 3246 2767/2559, 022 272
1261/2008 for assistance
24. Will CVL intimate client independently of the
KYC Compliance status - e.g. via a separate
letter?
No. In the event of any KYC Application Form being found deficient for
lack of information / insufficiency of mandatory documentation, CVL will
write to the investor stating that the KYC process is incomplete for want of
information/document.
25. Is a proof of entity required for a sole
proprietorships
Which application to be used for
proprietorship firm - Individual or non
individual? Can a Proprietor use his own
individual KYC for his firm’s investment like
PAN?
No. In case of sole proprietors, sole proprietor must be KYC compliant in
his individual name & capacity.
Proprietorship firm is under the Individual Category and the applicant has
to give his/her own PAN. Investment application may be in the name of
the firm – the details on how to apply would have to be obtained from
AMC. But the PAN of the sole proprietor in the capacity of an Individual
would have to be used for such investment
26. Will something like a attested college identity
card suffice
NO
27. Is a Proof of Address required for non
individuals
For HUF, Bank pass book copy will be the address proof. For others,
Constitution document will suffice
28. Can the same document double up as ID and
address proof e.g. driving license?
Not relevant now as PAN can be the only proof of identity. However, for
non-photo PAN Card, investors could give an alternative photo identity like
a Passport, Driving license, Voters’ identity card.
29. KYC application with Thumb Impressions
POS would accept applications carrying thumb impression in lieu of
signature provided the signature is attested by a Notary or a Gazetted
officer.
30. Application under discretionary Portfolio
Management Services which operates
through Pool account. Should the entity
complete KYC as POA?
No. Entity is investing in its legal capacity and should be KYC compliant
and quote PAN as an investor. For an AMC running PMS business, they
will quote the entity’s PAN for their own investment and investment done
for PMS clients thru Pool account.
31. Will Channel Distributors need to quote their
PANs as POA.
No. We need to record offline that KYC of channel partners done through
agreements, etc.
32. What would be the address proof for
residents of countries like UAE where the
addresses are P.O. Box addresses or C/O
addresses? Are these accepted in the first
PO box address is acceptable provided the proof is given in the form of
bank statements, etc.
place? In UAE, the PO Box is a genuine issue.
33. Can US residents apply for KYC completion? US based NRIs/PIOs can apply, but investments into funds will be subject
to fund houses’ internal guidelines.
34. In case the client provides the PAN no., but
doesn't have a PAN card, can the allotment
letter of PAN be accepted in place of the
photocopy of the PAN?
Only copy of PAN card will be accepted as proof of identity. In case the
PAN card is lost or misplaced, investor to produce a copy of the
acknowledgement of the request to IT department for issuance of a
duplicate PAN card.
35. As per the operating guidelines, the present
address in the KYC Application Form would
be the correspondence address. The
guidelines clearly state that the permanent
address for NRI/POI has to be the overseas
address. However, for PIO it is explicitly
stated that the present address has to be the
overseas address.
Does that mean that for PIOs, no
communication can be made to the local
address, even if it is supported with a valid
Address proof ?
While the space for providing overseas address is the same as permanent
address, it does not mean that the applicant cannot give an overseas in
the space provided for Correspondence address.
For registering a local communication address, the NRI/PIO has to give a
proof of address of self or a immediate relative with an additional
document evidencing the direct relationship i.e Parent/Spouse/Child.
May need to be modified now that we are treating PIO / NRI on par?
37. Can an OCI (Overseas Citizen of
be taken instead of PIO?
Yes. Either an OCI card or a PIO card will be required.
Can be deleted?
38. In case of Partnership firm, Trusts Any
officially valid document in respect of holding
a power of attorney to transact (ASL and
resolution / authority to invest) is mandatory.
Please confirm who all need to sign on the
document. Do all partners need to sign?
A letter listing the authorized people to transact signed by all
partners/trustees would suffice.
39. Would a bank certificate (with a photo of the Yes
investor) be a valid identity proof?
40. Board resolution that is required is the
resolution to invest or a specific resolution
to apply for a KYC
Resolution to invest
41. Investors who are required to travel
frequently and stay away in foreign countries
by nature of their profession and therefore
becoming NRI but they do not have any
permanent address for their stay abroad as
they normally stay in hotel. However, they
have residential address in
is therefore requested as to which documents
they should attach as a evidence of address,
particularly in case of Cricketers who are
traveling abroad.
An NRI client is staying in an accommodation
provided by the company he is working for
and so he has no overseas address proof in
his name which can be provided along with
the KYC. Can you please confirm what can be
done in this scenario?
Our earlier FAQ has this answer: Investor’s who travel frequently by
nature of their profession and stay away in foreign countries in company’s
accommodation or hotels (who become NRI and do not have a permanent
address) but have a residential address in
address with proof. In addition, please also provide a letter of confirmation
from your employer / business on company letterhead as an additional
proof of address.
42.
In case of investments through POA or
through channel distributors, there is a
requirement that all communications should
go to the address of the POA or the channel
distributor. If the address of the POA/Channel
Distributor has to be given in the KYC form,
what is the proof to be submitted.
This is not relevant as Mutual Funds are now required to obtain and verify
the address of their investors. MFs are writing to such distributors to
provide the address of the investors.
43. Whether a rent agreement can be accepted as
an overseas address proof
Yes
44. Documents accepted as address proof in
regional languages need to be translated.
Yes. Ration card accepted as valid proof. We expect the local POS to do
the translation of documents and state the same along side the “verified”
Does the translation need to be attested? If
yes, Who all can attest the translated
document? eg: Ration card accepted as
address proof
stamp. In case of foreign languages, these need to be translated into
English.
45. Can a power of attorney sign the KYC
applications (individual), also what are the
requirements in terms of documentation
(client & POA)?
POA submitting application on behalf of
investor and submitting POI & POA of self.
No. KYC Application form must be separately applied by the investor and
his POA. POA’s PAN / KYC acknowledgement also to be quoted on the
Mutual Fund transaction form, if applied through a POA.
46. Is there a particular stamp format, for
attestation?
Name, Designation, Bank branch, Employee no. State “Verified with
Original”
47. Do originals require attestation? if yes, is self
attestation also required on those ?
All documents must be submitted in original along with a self-attested
copy. The original will be returned across the counter after verification.
Alternatively, investors may submit notarized copies of the requisite
documents. On submission of the KYC form and documents to CVL,
investors will receive an acknowledgement across the counter, a copy of
which must be submitted to us as proof of having completed the
formalities related to PAN verification and KYC
48. Is the address proof (where the address is in
the name of an immediate relative) along with
the relationship proof valid for all NRI
customers or only UAE residents? -
This is valid for all clients, resident and non-resident
49. Is this address proof along with relationship
proof applicable for local addresses as well.
For e.g. For a recently married woman, who
does not have a Bank A/c ( not even in her
maiden name ) , relocated to a different
location, not having a Voter ID Card with
updated address , not having a driving
license what is the way out to complete the
KYC process? Her every document is in her
husband’s name and can provide a Marriage
Certificate for your information
Yes. A Woman, as in this example, should give marriage certificate as the
proof of relation along with the address proof of her husband.
50. Alternate PIO proof / OCI card (if PIO card /
OCI card is not available).
Proof of Indian Origin:
􀂃 Copy of foreign passport with place of birth as India OR
􀂃 Indian passport copy of Self / Parents/ Grandparents(with proof of
relationship) OR
Documents issued by a Government authority specifying place of birth as
Can be deleted since we are treating NRI / PIO / OCI all as Non
Residents?
51.
address and cannot furnish any proof. Apart
from this he has stated Nationality as US and
status as Resident Indian and PIO. At present
he has furnished following as proof of
identity and Proof of address.
1) Pan card copy 2) Photocopy of
Telephone bill
Should we show him as an Indian Citizen i.e.
Nationality and status as Resident Individual
only as he has being investing from local
savings bank+Pan Card copy +has provided
us with local address proof. OR
Should we take him as
or Overseas Citizen Indian attested copy with
only correspondence address i.e. only
section B1.
He should be categorized as a Foreign Citizen and Resident Indian.
Therefore, he has to submit his proof of ID (PAN card) and a proof for
local correspondence address. His passport copy, citizenship card / social
security card will have his foreign address which can be captured as a
permanent address.
(Not sure when and how this scenario would arise..)
52. In case of investment from executor to the
estate of a person whose settlement is
pending in Court, please confirm whether the
executor has to fill a individual or nonindividual
form.
Individual Form
(Should this not depend on who the executor is…?)
53. Is there a requirement for the custodian to
complete KYC formalities. Can the custodian
sign the KYC application form on behalf of
FII/sub-account (without completing KYC) for
itself as a custodian)
Custodian can sign on behalf of the FII and sub accounts. No need to
complete KYC for the custodian for this purpose.
I would propose that the FII should also complete KYC as even authorized
signatories need to be KYC compliant…
54. For a PIO or NRI, foreign address is
mandatory. However, Indian Address is not
mandatory. I.e. both the correspondence and
permanent address can be overseas - they
may be same or different.
Yes.
55. in some cases the bank managers refuse to
give employee code (SBI Versova), such
attestations were also rejected
In case of Banker attestation with round seal
and with out name seal and emp.code no.
No need for the bank manager to put his employee code. Stamp of the
bank, Name, Designation and signature is mandatory.
(Wouldn’t it be better to change the operating instructions and point 46
rather than having this as an exception?)
56. If a person is submitting both PAN card and
Passport and ticking both in the photo
identity proof column it is being rejected
since 2 places have been ticked.
As long as the POI is from the admissible list, the POS should accept the
form. In cases where the Applicant has ticked multiple items, the POS
should be instructed to enter any one from these and scan the relevant
document.
Should be deleted since PAN is the only acceptable POI?
57. Attestations by SEO, Police Inspector,
Cosmos Bank (Scheduled) Manager were
rejected. -
Attestation only by a Notary/Judicial Authority or a Bank Manager of a
Scheduled Commercial Bank (excluding Gramin and Cooperative banks)
acceptable.
58. In POI names are like Prasantbhai Rajeev
Thakkar and in the application it is mentioned
Prasant Rajeev Thakkar - Have asked to
accept this variation in name
Minor variations acceptable, provided some other information like the
name ( should this not be DOB / PAN or something else) or the signature
matches.
59. PANCARD taken on minor name which is
having guardian signature and submitted for
POI and the investor is major as per the KYC
application.
Not acceptable.
60. Permanent address if blank in case of
Individual. ?
Accept and leave the Permanent Address blank. It would also mean that
NRIs may only give their overseas address.
61. If the applicant submits PoI and PoA with the
attestation of any Gazetted officer/ Notary,
can we accept without self attestation ?
Attested copy is to be given in original and hence, it is similar to the
original document. It does not need self-attestation by the applicant
62. For non individuals - what are the documents
to be submitted as address proof? Can we
accept the application without POA?
For non-individual applicant, mandatory documents for each category are
specified. Hence, no additional POA is required for non-individual
applicant except in the case of HUF not having a Deed of declaration???
63. Which application to be used for
proprietorship firm - Individual or non
individual ? Can a Proprietor use his own
individual KYC for his firm’s investment like
PAN ?
Proprietorship firm is under the Individual Category and the applicant has
to give his/her own PAN. Investment application may be in the name of
the firm – the details on how to apply would have to be obtained from
AMC. But the KYC done in the capacity of Individual would have to be
used for such investment
64. POS have reported cases where applicant
brings original Demat A/C statement or Bank
statement as POA (and leaves the same with
the POS for storing by CVL). There are two
categories in these.
1. The statement is stamped and signed
by the issuer. - In such cases, the POS should
accept the same as valid POA since the
authenticity is established by the stamp &
signature. - However there are no means of
checking the authenticity of the stamp &
signature.
2. In second case, the documents do not
bear any signature or stamp from issuer. In
some cases it has a remark like "This is a
computer generated statement and does not
need signature". Can the POS accept such
documents as POA and take them on record?
I am personally not comfortable with this
since in principle, anyone with access to a
computer can print such a statement.
If the statements are on the letterhead of the Bank/DP, the same can be
accepted. Even a copy of the same can be accepted after verifying with
the original.
If not on entity letterhead, the same needs to have the seal of the bank
and signature.
Cannot accept statements printed on plain stationery without the bank
seal and signature.
(appears to be a repeat)
65 What is Money Laundering?
Money laundering broadly means the conversion or "Laundering" of
money that is illegally obtained, so as to make it appear to originate from a
legitimate source.
It was originally used in the context of terrorist, criminal, smuggling and
drug-dealing activities. In a wider context, tax-evaded money is also
covered.
66 What is the Prevention of Money Laundering
Act (PMLA)?
As part of a global initiative, a Financial Action Task Force ("FATF") was
created to help member countries draw up Anti-Money Laundering
("AML") legislation which would help implement the policies, techniques
and counter-measures to combat money laundering.
In
created under the aegis of FATF.The PMLA forms the core of the legal
framework put in place by
followed by banking companies, financial institutions and intermediaries by
administering KYC and other reporting requirements such as suspicious
transactions reporting, etc
67 What is FIU?
The Government of India set up Financial Intelligence Unit – India (FIUIND)
on18th November 2004 as an independent body to report directly to
the Economic Intelligence Council (EIC) headed by the Finance Minister.
FIU-IND has been established as the central national agency responsible
for receiving, processing, analyzing and disseminating information relating
to suspect financial transactions. FIU-IND is also responsible for
coordinating and strengthening efforts of national and international
intelligence and enforcement agencies in pursuing the global efforts
against money laundering and related crimes
68 Are Mutual Fund Investors also covered by
PMLA?
Yes, the PMLA covers all Financial Intermediaries, and this includes
Mutual Funds. As such, all investors are required to submit necessary
documentation that will help the Mutual funds complete the KYC
procedure.
69 What is KYC?
KYC is an acronym for “Know your Customer”, a term commonly used for
Customer Identification Process. SEBI has prescribed certain
requirements relating to KYC norms for Financial Institutions and Financial
Intermediaries including Mutual Funds to ‘know’ their customers. This
could be in the form of verification of PAN Number, identity and address,
financial status, occupation and such other personal information.
70 What are the KYC requirements for a Mutual
Fund Investor?
An Individual investor will have to produce copy of his PAN card as proofof-
identity and a separate document as proof-of-address. Non-Individual
Investors will have to produce certain documents pertaining to their
constitution / registration to fulfill the KYC process. A list of documents can
be found on the reverse of the KYC application form
71 Why am I asked to prove my identity, if I have
done no wrong?
As has been discovered in some recent terrorist acts such as the 9/11
bombings in
collared crime has arrived. Seemingly innocent people have been
involved. It is also observed that had the checks, as now proposed by the
PMLA, been in place, the detection or even pre-emption of the crime could
have been possible. In this context, you will appreciate that providing your
identity / address proof and information about your occupation and
financial status will only help the Government in isolating the few who are
involved in money laundering.
72 All this seems quite scary. Do I need to take
any precautions?
Yes. You should be prudent in your money matters, just as you are in
following some rules such as – say – not carrying unknown articles from
unknown persons when you are traveling across cities. You should not
receive or pay money on behalf of others, unless it is for a genuine
transaction in which you have participated. You should also take care that
you only deal with known individuals or companies which are registered
with or regulated by SEBI, RBI, etc for all financial transactions. Please
also ensure that you fill out forms completely and strike out any portions
which you do not use or need.
73 How do I submit PAN and complete the KYC
formalities?
The process for submission of PAN and completion of KYC formalities
at CVL / Franklin Templeton Investor Service Centres is as follows:
Investors will need to submit a completed KYC application form
affixing a copy of their recent passport-size photograph along with the
following documents at any designated 'Point of Service' Centres of
CVL (CDSL Ventures Ltd) or any of the Franklin Templeton Investor
Service Centres.
Documents required
PAN Card (which will also serve as a proof of identity) and
Proof of Address
We have tied up with M/s CDSL Ventures Limited (CVL) to accept
applications for PAN verification and KYC on our behalf. A list of CVL
'Point of Service' Centres and our Investor Service Centres is available at
www.franklintempletonindia.com under the 'Contact Us' section.
All documents must be submitted in original along with a self-attested
copy. The original will be returned across the counter after verification.
Alternatively, investors may submit notarized copies of the requisite
documents. On submission of the KYC form and documents to CVL,
investors will receive an acknowledgement across the counter, a copy of
which must be submitted to us as proof of having completed the
formalities related to PAN verification and KYC.
a) CVL will not separately accept PAN verification documents or KYC
documents. Both procedures must be completed together.
b) CVL will not accept a Distributor-attested copy of the PAN card.
However, the same would be accepted at Franklin Templeton Investor
Service Centres.
For instructions on how to fill the form the please refer to the reverse of
the KYC application form.
74 Does the investor have to approach every
Mutual Fund separately to fulfill these
requirements?
This is not required. For your convenience, we have up with M/s CDSL
Ventures Limited (CVL) to accept applications for PAN verification and
KYC on our behalf, as have a majority of Mutual Funds in
approaching CVL for this process, you only need to complete these
formalities once
The acknowledgement issued by CVL can be submitted by investors to
any mutual fund as proof of PAN verification and KYC compliance.
A list of CVL 'Point of Service' Centers and our Investor Service Centres is
available at www.franklintempletonindia.com under the 'Contact Us'
section.
75 Is it necessary to submit the KYC application
and documents / provide acknowledgement
for every transaction?
This is not required. You need to complete these formalities only once by
submitting a copy of the KYC acknowledgement to us. Please ensure to
provide us with a complete list of folio numbers where you are a Holder,
Guardian or Power of Attorney Holder to enable us to verify and update
our records.
76 What happens if I have multiple You can inform the Mutual Fund to register your PAN & KYC compliance
folios/accounts with a Mutual Fund?
against all the folios/accounts where you are a unit holder. However, each
of the holders/guardian/POA in these folios should register their KYC
compliance by submitting a copy of their KYC acknowledgement.
77 How long does it take to get the KYC
formalities completed?
When the KYC application and documents are submitted at the
designated Points of Service, after preliminary verification of documents,
the KYC acknowledgement will be issued across the counter. The
acknowledgement is valid 10 working days from the date of issue.
However, based on final verification of the documents, the same may be
cancelled / rejected in case of deficiency of documents or incomplete
information observed in the final verification. A separate communication
intimating you about the cancellation / rejection of acknowledgement will
be sent by CVL if your application cannot be processed for any reason. If
you do not receive any communication from CVL 10 working days after
you have submitted your documents, you may use the acknowledgement
to register your PAN and KYC status with Mutual Funds.
78 To whom is KYC applicable? Is there any
exemption?
KYC is applicable to all unit holders (including NRI’s), guardians and any
Power of Attorney Holders. There is no exception to the rule. KYC is not
required for Minor applicants and in such cases Guardian need to be KYC
Compliant
79 I do not have a PAN card. Can I get a KYC
acknowledgement without submitting the
PAN card?
No. Submission of copy of PAN card is mandatory while submitting the
KYC application.
80 I already have a KYC number. Do I need to get
a fresh KYC acknowledgement? What will
happen to the number?
If you have a KYC number where you have provided your PAN number
with proof, then you need not approach CVL for a fresh KYC
acknowledgement. Please submit the same to Franklin Templeton. If you
have not submitted your PAN with proof at the time of applying for KYC,
please approach any POS with your existing acknowledgement and
submit your PAN card with Proof to any of the POS. You will receive a
fresh acknowledgement which you can then use for submission to Mutual
Funds. Only acknowledgements from CVL where PAN is quoted will be
accepted for KYC compliance.
81 I have given a Change of Address to CVL.
How long will it take to reflect in my FT
mutual fund?
It will generally take 10 working days for your address to be updated in our
records.
82 I have lost/misplaced my KYC
acknowledgement. What do I do?
If you have misplaced your KYC acknowledgement, please contact CVL’s
Helpdesk on 022-3246 2767/2559 or 022-2272 1261/2008 who will advice
you further.
83 What are the consequences of KYC
acknowledgement cancellation/rejection?
Folio locked, no further investments permitted under that PAN till the KYC
process is completed
85 Is KYC compliance required for a minor
attaining majority?
Upon a minor attaining the age of majority (on completion of 18 years of
age), he/she must complete the KYC process in his/her own name. The
acknowledgement received should be registered with the mutual funds
where he/she holds investments, along with other Bank Details, Signature,
etc as per the requirements of the Mutual Fund.
86 Does the KYC acknowledgement have an
expiry date?
Generally, the KYC process once completed does not have an expiry
date. However, a KYC acknowledgement can be cancelled in certain
circumstances (e.g. if you do not register your acknowledgement with
Mutual Funds for a long period of time). You will be intimated of any such
changes or cancellations by CVL.
However, Mutual Funds reserve the right to request additional information
and documents or perform additional verification as a part of ongoing KYC
compliance.
87 I have printed my Bank Statement online
which contains my address. Can I use it as a
valid Proof of Address?
Bank/DP statements provided as proof of address must be on the
letterhead of the Bank/DP. If not, they should carry the stamp of the bank
and signature of an authorised person. We regret we cannot accept
statements printed on plain stationery without the bank stamp and
signature.
88 My Passport is expiring this month. Will it
cause any problem in getting a KYC
acknowledgement?
When documents such as Passports, Driving Licenses, etc carrying an
expiry date are submitted as proof of address, the document must be
current on the date of submission.
89 I haven’t received my latest Bank Statement.
Can I use my last statement which was sent
out 3 months before?
Electricity /Telephone bill, Bank passbook, Bank statement, demat
account statement submitted as proof of address should not be more than
3 months old as on the date of submission
90 How will I know that the KYC compliance is
registered in my Mutual fund?
KYC compliance for an investor in the folio will reflect in the account
statement stub portion as “KYC Registered”.
91 Do I have to visit a POS personally to obtain
an acknowledgement?
No. If you are not in a position to visit a POS personally, you may send the
form duly filled in along with the necessary documents through your
distributor or representative, who can arrange to obtain the
acknowledgement for you from a POS
92 Is there a charge I need to pay to obtain the
acknowledgement?
Currently, KYC acknowledgements are issued free of cost.
93 If all members in my family invest, can I get a
single KYC acknowledgement?
No. Each individual investor must apply separately for completion of PAN
verification and KYC. This however does not apply to minors, where the
Guardian must have completed these formalities on behalf of the minor.
94 I invest in my minor child’s name? Do I need
to get a KYC acknowledgement for my minor
child as well?
KYC compliance is not mandatory for minors. The guardian must be KYC
compliant.
95 Whom do I inform about change of
Name/Address/Status/Signature etc?
All the above requests must be made via CVL for investors who have
completed their KYC process. A KYC modification form is available with
the POS. You can make a request for change of address / correction of
name / change of status / signature update etc in the form and submit the
same. You need to enclose a copy of your previous KYC
acknowledgement and provide necessary address proof in case of a
request for change in address. You should provide for at least 7 days for
these changes to take effect with all the Mutual Funds with whom you are
invested. Please note that you should not write to the Mutual Fund or its
Registrar for the change of address (unless as a designated POS). The
specified form can be obtained form the AMFI or Mutual Fund website.
96 In case of transmission (in case of death of
the unit holder) cases what are the extra
documents required to be obtained?
If the deceased is the sole applicant, the claimant should produce his/her
KYC acknowledgement along with the other relevant documents to effect
the transmission in his/her favor
97 My income status has now changed form
what I have provided earlier in the KYC
application form. Do I need to request for the
change to reflect in my details submitted?
How do I request for the change
Yes a change in income status must be intimated if such change results in
a change in the income bracket you declared in the application form.
Please apply to any POS in the specified form. No proof is needed for
such change.
98 What if the address in an investors existing
folio is different from what he/she has
registered at the time of KYC?
When investors produce the KYC acknowledgement for an existing folio,
all address details of the holder and the signature will be replaced with the
details as registered in the records of CVL
99 For signature difference in investor request,
Mutual Funds generally ask for a banker’s
attestation. Since a signature is now available
with identity proof, will you still insist on
banker attestation for signature difference?
Signature verification is an important safeguard to ensure the security of
your investments with us. As such, Mutual Funds may conduct extra duediligence
in cases where signatures do not match, including procedures
such as requesting Bank attestation for such transactions. This could be
independent of the KYC procedure.
100 Why do I need to give my Income details?
How can I be sure that it will not be misused?
As per PMLA, it is mandatory for Mutual Funds to obtain financial status details from their investors. The information given by you in the KYC
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