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Monday, October 12, 2020

How to fulfill KYC requirements as per CKYC norms

 How to fulfill KYC requirements as per CKYC norms

All individual investors of mutual funds are now required to fulfill KYC requirements as per Central KYC norms.

A CKYC form can be obtained from the AMC or can be downloaded from the AMC/ KRA website or registrar.

Central KYC or CKYC is a government initiative to bring KYC process of all financial sector entities under a single window.

CKYC is managed by CERSAI (Central Registry for Securitisation Asset Reconstruction and Security Interest of India).

All individual investors of mutual funds are now required to fulfill KYC requirements as per CKYC norms.

CKYC form:

A CKYC form can be obtained from the AMC or can be downloaded from the AMC/ KRA website or registrar.

Information:

Though PAN is not a mandatory information to be filled as per the CKYC form, since the PAN is mandatory for security markets KYC, the form has been modified to make the information mandatory. The form also captures Aadhaar, date of birth, investor’s maiden name and mother’s name in addition to the earlier KYC form.

Documents:

Duly filled and signed form along with the following documents (self attested) should be submitted along with one photograph:

* Proof of identity

* Proof of address Copies must be supported by original documents for verification at the time of submission

FATCA information:

The CKYC form also contains FATCA declaration that must be filled up by the investor.

Process:

Once the form is submitted, the information provided will be verified and a unique KIN (KYC Identification number) will be generated and communicated to the investor by SMS/email. Some KYC Registration Agencies (KRAs) provide information on status of CKYC wherein the investor can key in PAN and their KYC status is displayed.

Points to note:

* Currently CKYC is applicable only to individual investors (resident and NRI).

* Existing investors who have already completed KYC under earlier process do not have to undergo any additional KYC requirements under CKYC

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