15 April 2024 – New KYC guidelines for mutual fund investors: Do you invest in mutual funds? You may have to update your KYC again! With effect from April 1st, millions of people may need to update their KYC information or risk losing the ability to complete transactions.
Many investors are learning that their present KYC status is no longer legitimate, according to ET. The identification or address evidence submitted during registration determines the validity. Previously allowed papers, including bank statements and utility bills, are no longer recognized by the regulator, which is now accepting a smaller range of officially legitimate documents (OVD) like Aadhaar, passports, and voter ID.
Your status would be placed “on hold” if your KYC was completed using non-OVD papers or if your email or mobile number was not validated. You won’t be able to redeem funds or perform transactions under such circumstances, including those pertaining to new or existing SIPs.
Conclusion
Any of the legally acceptable papers must be submitted to a mutual fund company, KYC Registration Agency (KRA), or mutual fund platform in order for these investors to go through a new KYC procedure.