KYC is an acronym for "Know your Customer", a term commonly used for Customer Identification Process. The Prevention of Money Laundering Act, 2002 ("PMLA") forms the core of the legal framework put in place by the Indian Regulators to combat money laundering to be followed by banking companies, financial institutions and intermediaries by administering KYC process and other reporting requirements such as suspicious transactions reporting, etc. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries (such as Mutual Funds) to 'know' their customers.
All investors (Individuals or Non Individuals) who wish to make an investment in a mutual fund scheme via a Lumpsum amount or via a Systematic Investment Plan (SIP) will be required to complete the KYC process. This one-time verification is valid for transactions across all mutual funds.
Check your KYC status
Applicability of KYC norms:
| Category of Investors |
Up to December 31, 2010 |
W.e.f. January 1, 2011 |
| Resident Individuals |
Rs. 50,000 and more |
Any Amount |
| Non Resident Investors/ Persons of Indian Origin |
Any Amount |
Any Amount |
| Investors investing through Channel Partners/Channel Distributors |
Any Amount |
Any Amount |
| Non Individual Investors (Corporates, Partnerships, Trusts, HUF, etc.) |
Any Amount |
Any Amount |
Important Notes:
Kindly note that KYC norms may undergo changes from time to time. Hence Investors, before submitting the investment applications, are requested to apprise themselves about KYC applicability.
We advise investors who are not KYC Compliant to complete the KYC process at the earliest.