10 Things to know about Mutual Fund KYC for NRIs

Power Of Attorney : Written legal authority given by one person to another person to act on the principal's behalf can remain in force only so long after principle is aside.

Will : legal declaration of how a person wish his/her possession to be disposed after their death

Fund : An amount of money saved or collected for a particular purpose

Investor : An investor is any party that makes an investment.

Association of mutual funds in India is an apex body for all the Asset Management companies registered with SEBI. AMFI has created a set of Ethics & Guidelines to be followed by the companies & distributors thereby protecting & promoting the interest of Mutual funds as well as investors.

KYC is nothing but the short name (acronym) for “know your client”. This is actually a procedure laid down by SEBI for its financial institutions, intermediaries and depositories. It is essential for an investor to be a KYC compliant (A person who has fulfilled the eligibility criteria laid down by KYC procedure.) Failing to do it, investor will be restricted from investing in financial market whether it is equity market or mutual funds.

This KYC procedure follows the prevention of money laundering act, 2002. In addition, the organization responsible for an infrastructure of this procedure is CSDL ventures limited, which fully owned subsidiary of central depositary services of India.

All the financial records of investors in Indian market has been viewed, reviewed and maintained through KYC norms by this organization.

How to apply to be a Mutual Fund KYC compliant

1) You can get the soft copy of Mutual Fund KYC form on websites of mutual funds, AMFI and Agencies where KYC is registered. Take a print out of that form, fill it up and submit it at Registration agencies, personally! If your in person verification has already been done then you can send it by post or courier.

2) Documents, you need to submit along with the application are your

* Recent photo,

* PAN card,

* Passport as identity proof

* Permanent and overseas certified address proof.

*If you are from merchant Navy then you need to submit a mariner’s declaration or certified copy of Continuous Discharge Certificate too!

3) You should submit the certified true copies of all the required documents.

Returning Nri

4) Attestation requirement: All the documents can be attested by officials of overseas branches of scheduled commercial bank registered in India, public notaries or Indian embassy/ consulate general of their respective country.

5) I.P.V: i.e. in person verification, which is necessary for NRIs or PIO, can be completed by NISM or AMFI certified distributor (who fulfills the criteria of know your distributor) or scheduled commercial bank.

6) If any of the documents (you are submitting) are in a language other than English then convert it to English before submission.

7) If any NRI /PIO have appointed someone as his/her power of attorney for investment in India then both the parties should be KYC compliant in India.

8) Other than all required documents PIO (person of Indian origin) should submit the attested true copy of the PIO card.

9) Mutual Fund KYC compliance procedure is free as of now so you do not have to pay anything while submitting an application.

10)And last but not the least , as soon as you get your KYC compliance , intimate it to the mutual fund houses with whom you are holding folios . So that they can update their records too!

These 10 points will be helpful for an NRI who is goinig to apply for KYC

The advantages of the Mutual Fund KYC

If you have completed KYC once, then you can invest in any mutual funds any number of times with the same KYC.

If you need to change your address in all your mutual fund investments, you need not do it separately. If you could update that in the KYC, that will automatically reflect in all the mutual fund folios.

Though the Mutual Fund KYC procedure may look complicated for an NRI from the outside, it is actually a very simple procedure if you are aware of the above 10 points.

As an NRI you can consider these points before applying KYC. If you have any queries or feedback you can use the comment box below.

Hope this gives you a good starting point for completing the KYC formalities. If you want to proceed further in creating a financial plan, you can take advantage of

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5 thoughts on “10 Things to know about Mutual Fund KYC for NRIs”

  1. PIO is not compalsory for NRI and hence all NRI may not have PIO.
    If any NRI does not have PIO and local address proof as they do not have any property in India then how they can complete KYC procedure?

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