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Mutual Fund KYC for NRIs: 10 Most Important Things to Know

KYC is a procedure laid down by SEBI for its financial institutions, intermediaries and depositories. KYC is nothing but the short name (acronym) for “Know Your Client”. It is essential for an NRI as well as a resident investor to be a KYC compliant (A person who has fulfilled the eligibility criteria laid down by KYC procedure) in order to invest in India.

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.

Apart from explaining the procedures of how-to-do Mutual fund KYC, this article will discuss the 10 most important points to know for an NRI to get Mutual Fund KYC done without hassle.

How to apply to be a Mutual Fund KYC compliant

1) Where to Start? Since you are an NRI, you can get the soft copy of Mutual Fund KYC Form online through the websites of mutual fund companies, AMFI, CDSL and KYC Registration Agencies (KRA) where KYC is registered. Take a print out of that Form, fill it up and submit it along with the required documents at Registration agencies, personally! If your In-Person Verification (IPV) has already been done then you can send the required documents by post or courier.

2) Documents Required for Mutual Fund KYC for NRI: Documents, you need to submit along with the application are your

  • Recent photo (passport size)
  • Identity Proof
    • ⇨ Passport
      PAN Card
      ⇨ Driving License
  • Address Proof (permanent & overseas certified address proof)
    • ⇨ Electricity Bill
      ⇨ Bank Account Statement
      ⇨ Life Insurance Policy
  • *If you are from merchant Navy then you need to submit a mariner’s declaration or certified copy of Continuous Discharge Certificate too!

3) Attestation of documents: The NRI should get all the documents attested by officials of overseas branches of

Online Mutual Fund Side Box

scheduled commercial bank registered in India, public notaries or Indian embassy/consulate general of their respective country.

4) You should submit the certified true copies of all the required documents during the IPV (In-person Verification). If you are doing IPV through Video conferencing, you may be required to upload the documents on the AMC/KRA’s website before starting the video call and may also be asked to show the hard-copy for a few seconds in the video call. Also, you will be asked a few questions about the details in the documents you have uploaded for cross-verification.

5) In-Person Verification (IPV), which is necessary for NRI, PIO, & OCI investors can be completed by NISM or AMFI certified distributor (who fulfills the criteria of know your distributor) or scheduled commercial bank. In-Person Verification is the process of physically meeting the official representative (from the distributor or mutual fund house or NISM or AMFI) with the original documents that you have submitted.

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 a Power of Attorney is appointed by an NRI/PIO/OCI for investments in India, then both the parties should be KYC compliant in India.

8) PIO’s and OCI’s: Other than all required documents, a PIO (Person of Indian Origin) and OCI (Overseas Citizen of India) should submit the attested true copy of the PIO card and OCI card respectively.

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

10) Keep your fund house informed: Last but not the least, as soon as you get your KYC compliance intimate it to the mutual fund houses where you are holding folios. So that they can update their records too!

These are the 10 important points that will help an NRI who is going to apply for a Mutual fund KYC.

In addition to these points, an important point to remember is that even though you complete your KYC through online, you should directly complete the In-person verification to finish the process.

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 update a change in the KYC, it 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 please mention it in 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 make use of

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5 thoughts on “Mutual Fund KYC for NRIs: 10 Most Important Things to Know”

  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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