1.What is KYC and what are the latest regulatory guideline in this regard?

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Jared Simmons
6 years ago
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1 FAQ 1.What is KYC and what are the latest regulatory guideline in this regard? KYC or Know Your Customer is a customer identification process. The Securities and Exchange Board of India (SEBI) has laid down guidelines under the Prevention of Money Laundering Act 2002, which makes it binding for financial institutions and financial intermediaries like mutual funds to acquaint themselves with their customers. KYC process helps prevent money laundering and other suspicious transactions. W.e.f January 2012, SEBI has set out revised KYC norms to make the process uniform across the Securities Market and introduced a common KYC application form for all SEBI registered intermediaries viz. Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, etc. Investors who have not completed the Mutual Fund KYC norms earlier are therefore requested to use the uniform KYC application form to apply for KYC at the time of investment in Mutual Funds. In the revised KYC regulations, In Person verification ( IPV ) has been made mandatory for Mutual fund. 2.Who needs to get KYC compliant? Investors who want to make an investment in a mutual fund scheme either through a lumpsum or a Systematic Investment Plan (SIP) should complete the KYC process. KYC is mandatory irrespective of the investment amount. A one-time verification is all that is needed for transactions across all mutual funds. If you are one of the following you must comply with KYC norms: Individual(s) or Non-Individual(s) A guardian who is investing on behalf of a minor Constituted Power of Attorney (PoA) holder(s) Constituted Power of Attorney (PoA) holder(s) In case you have become an investor due to operation of law, e.g. in case of a death of an investor. 3.What is IPV? IPV(in person verification) is a mandatory requirement as per SEBI to get your KYC compliant. It means all your documents are original seen and verified by the KRA. 4.What is Online KYC? This new offering from Sundaram BNP Paribas Fund services enables the investor to complete the KYC process including IPV (In Person Verification), online conveniently at click of few buttons.the key objective of online KYC is to reduce turnaround time and paper work. 5.How is the IPV done online? Online KYC offers the following Three options to the investors to complete the IPV formality, as per their choice and convenience: Through our Customer Service Executive via Skype Through his Distributor By Walk-in to our designated branches.

2 6.Is there a resitriction on investment amount for KYC done online? No. The investor can invest any amount after getting his KYC done online through SBFS. 7.Proof of Identity(POI) Document admissible as POI? PAN card with Photograph 8.Proof of Address (POA): - List of documents admissible as Proof of Address: (*Documents having an expiry date should be valid on the date of submission.) 1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/ Flat Maintenance bill/ Insurance Copy. 2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old. 3. Bank Account Statement/Passbook -- Not more than 3 months old. 4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts. 5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks / Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public / Elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority. 6. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members. 7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken. 8.The proof of address in the name of the spouse may be accepted. 9.How should I enter my Name in the KYC form? The Name as mentioned on your PAN card should be entered in the KYC application form. 10.How should I select the Status option? There are mainly three status options viz, Resident Indian, Non Resident. Based on the status selected, the applicant should submit self attested copies of the relevant documents as under: In case of Resident Indian, submit Proof of ID (PAN) & Proof of valid address. In case of Non Resident Indian, copy of PAN card, copy of passport /PIO card/oci card & overseas address proof is mandatory. 11.Is it mandatory to submit proof of address? Yes. It is mandatory to provide self attested copy of valid address proof. Please refer list of documents which can be taken as a valid proof of address. Further, the details on proof of address should match with the details given in the application.

3 12.Should I submit both copies of address proof if my Correspondence & Permanent addresses are not the same? If the Correspondence & Permanent addresses are different, then applicant has to submit self attested copy of Residence /Correspondence address. Copies of both addresses. In the application form the applicant should select the option for specific proof of address submitted by him/her. 13.Do I have to submit any documents for contact details? No. However, in the contact details column the applicant should give details of his/her telephone numbers of his/her residence &/or office, his/her mobile number, FAX number & id, if available. Mobile number & id are mandatory as investor will be contacted through these modes of communication for IPV. 14.What happens if I have multiple folios/accounts with a Mutual Fund? You can inform the Mutual Fund to update the KYC Acknowledgement against all the folios/accounts you have with it. However, each of the holders in these folios/accounts should be KYC Compliant. 15.Is there a charge I need to pay to get myself KYC Compliant? Online KYC is done free of cost. 16.What is the difference between New investor and Existing investor option? For Online KYC, Investors who have already invested with Sundaram Mutual Fund & BNP Mutual Fund are considered as Existing investors. Prospective Investors who wish to invest in mutual funds are construed as New Investors. 17.Whether Exempt PAN holder are allowed to apply for KYC through this option? No, exempt PAN holders are currently not allowed to apply for online KYC as PAN is mandatory. 18.What will happen if am not having valid id? Valid id is mandatory to apply online KYC as One Time Password (OTP) is generated and sent to the mentioned address to proceed further. 19.What will happen if am not having valid Mobile number? Valid mobile number is mandatory to apply online KYC as One Time Password (OTP) is generated and sent to the mentioned mobile number to proceed further.

4 20.In case i have a Folio/CIF based on my investment in Sundaram Mutual Fund or BNP Paribas Mutual Fund, which option I need to use to apply for KYC? You need to click on existing investor option if you already have a folio/cif with us to proceed further. 21.In case of an existing investor, can he give contact details other than the registered one? No, existing investor need to provide only the registered mobile number and id, else the system will not validate to proceed further. 22.How will the IPV done in case investor opts for Customer Service Agent option? The IPV in case of Customer Service Agent option would be done through skype call at the time specified by the investor while filling the application. The Investor would be required to show the originals of the documents uploaded during IPV. 23.What happens in case the Skype ID is not available? Investors who don't have a skype id will be sent a link for skype id creation where one time login is created by investor and IPV is done through skype call. 24.What is the file size and format to upload the documents? The required documents should be uploaded in Jpeg / JPG format only and the file size of each document should not exceed 10 mb. 25.Any Specifications for Signature upload? The investor has to sign in a small plain piece of paper. The size of the paper should not exceed the size of visiting / business card, to ensure the clarity of signature image. Please do not use A4 size paper. 26.Whether Aadhar card is mandatory to apply for KYC? No, Aadhar card is not mandatory to apply for online KYC. 27.How will the IPV done in case investor opts for Distributor option? On completion of the online KYC form, the distributor opted by the investor would be notified on the IPV. The investor would be required to carry the originals of the uploaded documents to his distributor to enable him to complete the IPVformalities. 28.How will the IPV done in case of error message stating that your distributor is not having access to do IPV? Distributors who hold DPIN are only eligible to do IPV.Investors can then opt for IPV through either customer service agent option or through walk in to SBFS branches.

5 29.How will the IPV done in case investor opts for Walk In option? On completion of the online KYC form, the investor can walk in to the branch specified by them along with the originals of the uploaded documents to enable the SBFS branch personnel to complete the IPVformalities. 30.When should the investor approach branches for Walk In option? The investors can walk into the specified SBFS branches at a convenient time during the business hours on a working day. 31.Why is Bank details mandatory for New Investors? Bank details are obtained to create a zero balance folio for prospect investors. 32.Can the investor transact immediately after completion of Online KYC including IPV formalities? As the details are onwarded to CVL KRA for further processing the investor can transact after confirming his KYC status from CVL link provided in the mail sent to him.

3.Where and how does one get to be KYC Compliant? Does the investor have to repeat the KYC process with every Mutual Fund?

1.What is KYC? 2.What are the KYC requirements for a Mutual Fund Investor? 3.Where and how does one get to be KYC Compliant? Does the investor have to repeat the KYC process with every Mutual Fund? 4.What