Why can’t I invest in mutual funds without having a PAN card?​

(Permanent Account Number) PAN Card

 

Why can’t I invest in mutual funds without having a PAN card?

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As per circulars MRD/DoP/Cir-05/2007 dated April 27, 2007 and MRD/DoP/Cir-08/2007 dated June 25, 2007, SEBI has made the Permanent Account Number (PAN) the primary, mandatory identification for all mutual fund transactions. This has been done to reduce the risk of fraud and money-laundering, and create an environment that is conducive for investors. Since all mutual fund and asset management companies are bound to adhere to this requirement from SEBI, you need to have a valid PAN card to invest in mutual funds.

What should I do if I want to invest in mutual funds but don’t have a PAN?

As per SEBI’s directives and mandatory requirements, you are permitted to invest in units of mutual fund schemes only if you have a valid Permanent Account Number. You will need to apply for and get a registered PAN card before you can own mutual fund investment units.

 

Is it possible for me to get my PAN verified along with my mutual fund investment?

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Yes. If you are an investor who has a PAN that is not verified, submit a photocopy of your PAN Card and your original PAN card at our servicing centre or at a Computer Age Management Services (CAMS) Investor Service Centre. Your original PAN card will be verified and returned to you immediately. Once your verification is complete, you will not need to carry out PAN verification for your subsequent mutual fund investments.

​If I am KYC complied and have a Mutual Fund Identification Number (MIN), do I still need to verify my PAN before investing?

Yes. You do. In addition to KYC norms, SEBI has mandated that PAN is the sole identification for all mutual fund related transactions. So even though you have a MIN, you need to have a verified PAN to be able to invest in mutual funds