It’s important to pay attention if you own mutual funds but haven’t updated your KYC with Aadhaar. Investors in mutual funds who haven’t connected their investments to Aadhaar may encounter some difficulties beginning in the fiscal year 2024–2025.
New KYC requirements for investors in mutual funds have been released by the Securities and Exchange Board of India (SEBI). These guidelines became operative on April 1. Now, in order to continue participating in mutual funds without any issues, investors must guarantee their KYC compliance through Aadhaar.
Before, investors could obtain KYC through other documents such as utility bills or bank records. However, as Aadhaar becomes more widely used, SEBI is advocating for its need in the mutual fund KYC procedure.
It is imperative that you verify your KYC status with KYC Registration Agencies (KRAs) such as CAMS, Karvy, CVL, or NDML to prevent any disruptions to your mutual fund investments.
For Non-Resident Indians (NRIs), the new standards present difficulties. Many NRIs do not have an Indian mobile number, which is sometimes required for Aadhaar authentication. They have difficulties upgrading their KYC status as a result of this.
To complete your KYC, you can use the following documents:
SEBI’s new KYC norms bring Aadhaar into the forefront for mutual fund investors. Make sure your KYC is up to date to continue investing smoothly. For NRIs, navigating these changes might be a bit trickier due to the Aadhaar authentication process. Ensure you have the necessary documents handy to avoid any disruptions in your mutual fund journey.
