Now, declaring annual income must for mutual fund investments
If you invest in mutual funds, get ready to disclose your annual income
or net worth among other details in the new know-yourcustomer (KYC)
form.
If you invest in mutual funds, get ready to disclose your annual income or net worth among other details in the new know-your-customer (KYC) form.
The capital market regulator, Securities and Exchange Board of India (Sebi), has made it mandatory for mutual fund investors making fresh investments to disclose this detail from 1 December 2012.
Investors who had completed the centralised KYC registration process before January 2012 will have to provide the additional information by filing a small 'KYC details change' form which includes the gross annual income or net worth.
The new KYC registration process also makes in-person verification mandatory for investors. Customers will have to submit the change form along with identity and address proof themselves at the nearest branch of a mutual fund company or a KYC registration agency. This is a one-time process and investors are not required to repeat the process with a new fund house. If an investor is already KYC-compliant according to the earlier norms, there will be no effect on the on-going transactions in the existing accounts.
The capital market regulator, Securities and Exchange Board of India (Sebi), has made it mandatory for mutual fund investors making fresh investments to disclose this detail from 1 December 2012.
Investors who had completed the centralised KYC registration process before January 2012 will have to provide the additional information by filing a small 'KYC details change' form which includes the gross annual income or net worth.
The new KYC registration process also makes in-person verification mandatory for investors. Customers will have to submit the change form along with identity and address proof themselves at the nearest branch of a mutual fund company or a KYC registration agency. This is a one-time process and investors are not required to repeat the process with a new fund house. If an investor is already KYC-compliant according to the earlier norms, there will be no effect on the on-going transactions in the existing accounts.
