The Association of Mutual Funds of India (AMFI) has revealed that only 3 per cent of mutual funds have ‘KYC Hold’ status under the newly introduced mutual fund KYC rules, which were implemented from April 1. Venkat Chalasani, CEO, AMFI, on Thursday said that at present 93% of accounts either possess KYC registered or KYC Validated status, with only 3% encountering 'KYC Hold' status. In April, the inflows in equity mutual funds fell 16%. The inflows in April stood at Rs 18,917.09 crore as against Rs 22,633.15 crore in March. In April, net asset under management (AUM) of the industry was Rs 57.25 lakh crore from Rs 53.4 lakh crore in the preceding month. After witnessing outflows to the tune of Rs 94.17 crore in March, small cap mutual funds saw inflows of Rs 2,208.7 crore in April. Speaking after AMFI revealed April's mutual fund numbers, Chalasani said: “AMCs, distributors and other stakeholders are committed to facilitating a seamless KYC validation process for all, thereby ensuring the integrity and accessibility of mutual fund investments across the board.” He added that 98-99% of MF transactions are processing smoothly. He further clarified on SEBI's latest directive on KYC norms. > KYC-verified investors retain the flexibility to invest in any Mutual Fund (MF) scheme. > KYC-registered investors can continue their investments in Asset Management Companies (AMCs) where they already hold investments. > Investors facing KYC hold status should to rectify their KYC status promptly with valid documents. On April 24, the five KYC Registration Agencies (KRAs) in the Indian mutual fund industry highlighted that nearly 73 per cent of KYC records are classified as ‘KYC Validated’, 15 per cent of KYC records as ‘KYC Registered’ and the balance 12 per cent as ‘KYC On-Hold’. Earlier, a report stated that around 1.3 crore MF accounts were said to be ‘on hold’ due to incomplete KYC as many individuals failed to provide their non-Aadhaar and non-officially valid documents (OVDs) during the initial KYC registration process. The Sebi, in its new set of rules, stated that investors with an 'on hold' KYC status will not be able to carry out any transactions in mutual funds. MF KYC process As per Sebi regulations, utility bills and bank account statements are no longer considered valid documents for KYC compliance. This decision has been made in order to strengthen the KYC process and ensure the authenticity of the information provided. It is now mandatory for individuals to update their KYC with both their PAN card and Aadhaar card, and to link the two documents together. > KYC Validated If you see 'KYC Validated' status, the documents you submit are authenticated by the issuing authority. Provided there are no alterations to the information contained within these documents, a mutual fund investor is afforded the convenience of investing in any mutual fund scheme without further complications. At present, only PAN and Aadhaar details are eligible for verification directly from their respective issuing sources. Therefore, individuals who have submitted their PAN and Aadhaar for KYC purposes are likely to have their KYC status approved swiftly, enabling them to invest across various mutual fund companies seamlessly. > KYC RegisteredVerified If you see KYC RegisteredVerified, it means the documents provided could not be independently verified from the issuing authority. This would mean that mutual fund investors can invest in any mutual fund house by producing the required documents again. > KYC on-hold AMFI has stated that if the status of KYC is shown as “KYC Hold" it could be because the mobile or email is not validated PAN is not linked with Aadhaar deficiency in the KYC documents. Once the KYC status is changed to registered validated, an investor can start transacting again. How to verify your KYC status online Investors may check the status of KYC compliance through the website of any of the KYC Registration Agencies (KRAs). Here are the 5 authorised KRAs – CVL KRA, NDML KRA, DOTEX KRA, CAMS KRA, and Karvy KRA. Mutual fund subscribers can verify their KYC status online like this: 1: Visit a KRA website. For instance, go to www.CVLKRA.com or www.CAMSKRA.com. 2: On the homepage, look for “KYC Inquiry”. 3: You will be redirected to a new page. Here, insert details of your PAN, solve the captcha, and then press “Submit”. 4. After submission, your KYC status will appear on the screen based on the PAN details you entered. 5. You may see the KYC status as validated, registered, or on hold.
