Sunday, December 12, 2010

unique identification (UID) number mandatory for all securities transactions

UID (Unique Identification) may soon be required for all securities transaction. At present the Ministry of Finance (MoF) is seeking views of capital market regulator - SEBI on making UID number mandatory.

This move, if implemented, could help the former track incidents of frauds and money laundering in market transactions.

Thursday, December 9, 2010

Mandatory KYC (Know Your Customer) with effect from 1st January, 2011 for ALL investments in Mutual Funds



With effect from 1 January 2011, Know Your Client (KYC) norms for certain categories of investors (whether new or additional purchase) will undergo a change.
Know Your Customer (KYC) is a process introduced by SEBI as part of the Prevention of Money Laundering Act (PMLA). Under this, all Mutual Funds are required to comply to the KYC guidelines wherein they are required to perform customer due diligence for all their investors. Earlier, KYC was mandatory for Mutual Fund investments of Rs. 50,000 and above but now KYC has been made mandatory for investments of all amounts.
 
With effect from 1st January 2011, KYC (Know Your Customer) norms will be mandatory for ALL investors (including existing investors and joint holders), who wish to make investments in Mutual Funds, irrespective of the amount of investment.

In case you are not a KYC compliant investor till now, we request you to please apply for KYC compliance by submitting the KYC form duly filled in the required details along with the relevant supporting documents to the nearest Point of Service (POS).

Documents required to be submitted along with KYC application:

a)    Photo PAN card
b)    Proof of Address (Latest Telephone or Electricity Bill / Passport / Bank account statement / Voter ID / Driving License etc.)
c)    Passport size photograph

 Other important points:
Incomplete documents/forms are liable to be rejected. Investors must adhere to the checklist provided in the application form.
Investors, who have already completed their KYC formalities, need not undergo any additional requirement. We request you to submit your application for KYC compliance to one of the designated POS at the very earliest, so that you are not inconvenienced once the new requirements get implemented.

For individuals 
            For Non individuals

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