Know-your-client (KYC) procedure - Frequently asked Questions (FAQ)
Guidelines issued by Securities and Exchange Board of India under The Prevention of Money Laundering Act, 2002 ("PMLA") requires Mutual Funds to follow enhanced know your client (KYC) norms. This FAQ is only meant to clarify certain questions relating to enhanced KYC procedures. Please contact your distributor/ DSP Merrill Lynch Mutual Fund for further clarifications.
  • What is KYC?
  • What are the KYC requirements for a Mutual Fund Investor?
  • Where and how does one get to be KYC Compliant? Does the investor have to repeat the KYC process with every Mutual Fund?
  • What is a KYC Application Form?
  • Should the investor visit PoS personally to obtain KYC Compliance?
  • From what date is it mandatory for an investor to be KYC Compliant?
  • To whom is a KYC applicable? Is there any exemption?
  • How does the investor transact in Mutual Fund after completing the KYC process?
  • In case of existing investors when and how will the KYC norms be introduced?
  • Once an account is opened with a Mutual Fund by 1st, 2nd & 3rd holder by completing the necessary formalities and the investor's return to make a fresh investment, do they need to furnish the necessary documents again?
  • What are the consequences of KYC cancellation/rejection?
  • Does the KYC Acknowledgement have an expiry date?
  • What happens if I have multiple folios/ accounts with a Mutual Fund?
  • Is there a charge I need to pay to get myself KYC Compliant?
  • I am an NRI residing outside India. How do I get myself KYC Compliant?
  • Are there any special requirements for an NRI?
  • Is there any special requirement for a PIO (Person of Indian Origin)?
  • What about Minor becoming Major?
  • Whom do I inform about change of Name/Address/Status/Signature etc?
  • If I am already providing my PAN/PAN Proof for my investment in Mutual Fund. Is that not sufficient for meeting the requirement of KYC?
  • Why do I need to give my Income details? How can I be sure that it will not be misused?
  • Do I need to inform about my change of Income status?
  • Can an investor give a COA (Change of Address) along with redemption request?
  • Is the KYC Acknowledgement a separate form or is it a part of the Mutual Fund application. Which of the forms require being time-stamped?
  • What do I do once I have received my KYC Acknowledgement?
  • What if I have already obtained a MIN?
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