Mutual Fund KYC procedure for NRI investors in India


In order to invest in Mutual Funds, a non-resident Indian (NRI) or person of Indian origin (PIO) needs a PAN, bank account and must be KYC ( know your customer) compliant.

What is Aadhaar based e-KYC for mutual fund investments

The following procedures need to be taken by NRI investors to complete KYC formalities.

KYC Form: A soft copy of Mutual Fund KYC form is available on the websites of AMFI, Mutual fund houses and KYC Registration Agencies (KRAs) where KYC is registered. Take a print out of that form, fill it up and this needs to be submitted, along with the necessary documents. The documents can also be sent by courier/post to the KYC Registration Agencies if the IPV is completed.

Required documents: A recent photograph, Passport as identity proof, PAN card, Permanent and overseas certified address proof and PIO card (for PIOs) need to be submitted. All the documents can be attested by authorized officials of overseas branches of scheduled commercial bank registered in India, public notaries or Indian embassy or consulate general of their respective country. Apart from these, PIO should submit the attested true copy of the PIO card. If the identity proof/address is in a foreign language, they have to be translated into English before submission.

IPV process: IPV has been made mandatory for Mutual fund investors and this process makes it easier to verify the details of the person holding the account. In the case of NRIs, the IPV should be completed by the certified broker who has complied with “know your distributor” (KYD) formalities, or a scheduled commercial bank. In traditional method of IPV, agencies will send their staff to meet the customer and match/check all the documents and identification proofs. In new method of IPV, this process can be performed over the Internet using webcams from Skype, GTalk, Yahoo Messenger or any trusted online chat platforms in order to make the verification process faster and simpler.

Once KYC is done, Investors must attach their KYC along with the Fund Application Form while investing for the first time in a mutual fund. Applications Forms or Transaction Slips not attached by KYC Acknowledgement are liable to be rejected by the Mutual Fund.

If you are not done your KYC, you will not be able to invest in a mutual fund in India.

Hope you find above information useful. Do share your views below.

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