KYC Form

Know Your Customer or KYC Form is a mandatory compliance check and is the first step towards registering personal information and authenticating your identity before investing in mutual funds. There are five variants of mutual fund KYC form that an investor has to submit based on the applicant being an individual or non-individual like institution, Hindu Undivided Family (HUF), etc. For updating personal details, the investor has to submit a fresh KYC Form, mentioning the details that need to be changed.

The KYC process can be completed either offline or online. These services are now offered online to make it convenient for applicants to complete the KYC process with just a few clicks across geographies. The original paper document is the same as the one available online. These processes are supervised by regulatory authorities like Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI) to prevent illegal transactions.

The following is the KYC process when PAN card is the documentary proof:

• Download and fill up the KYC Form
• Submit the form along with essential documents as proof of identity and address
• Subsequently, the in-person verification (IPV) process will be scheduled as per your preference of time
• Submit the KYC Form at KRA’s nearest intermediaries
• On successful completion of online registration, you can check your KYC status on the KRA website by entering your PAN card number

Central KYC or cKYC acts as a central database that enables CERSAI (The Central Registry of Securitization Asset Reconstruction and Security Interest in India) to manage the stored personal information of an applicant across locations in India. This enables banks and other financial institutions like mutual fund houses and insurance companies to access the information any time they require.

An applicant interested in investing in mutual funds has to first submit the KYC Form to qualify for opening a cKYC account. You will be sent a 14-digit identification number that you need to enter at the time of making any new investment or buying any financial product. The unique identification number will give the relevant financial institution the access to your centrally saved personal details. This saves you from the hassle of filling up and submitting the same personal information every time you make an investment or purchase a financial product.

Below are the fields in the KYC Form that you have to fill up accurately:

Details about personal identity: This section is dedicated to personal information about the applicant like name, name of father or spouse, PAN number, gender, date of birth, address, occupation and citizenship. Most of these fields are and have to be supported with documents as proofs of the details provided.

• Proofs of Identity: Other than PAN, other self-attested copies of identity proofs will have to be attached to support the information provided in the previous section. The accepted documents are any photo identity proof issued by the Government like Passport, Aadhaar Card Number, Voter ID, Driving License, etc. The ID card number has to be mentioned in the relevant field of the KYC Form.

• Details of Address: The information that you provide here has to match the details mentioned in the identity proof document, which you have attached with your KYC form. These documents include all the documents mentioned above, except PAN card, as it does not have your address mentioned on it. If your preferred address for correspondence is the same as the communication address, you don’t have to submit additional proofs. However, if your correspondence address is not the same as the permanent address, you have to enter your permanent address here.

• Contact Information: Digital media has gradually become the preferred option for communication. Therefore, the KYC Form includes a section for details related to email and SMS, instead of physical letters being sent to the address of correspondence. Here, you need to mention your email id and mobile number, without zero as prefix. If you want to alter this information in the future, you can fill up a fresh KYC form with the new details and submit it along with relevant documentary proofs. You also have the option to provide home and office landline contact numbers in the sections provided in the KYC form.

• FATCA/CRS Details: The FATCA (Foreign Account Tax Compliance Act) has been made mandatory for all investors planning to invest in mutual funds. Investing overseas has gradually become increasingly popular among investors in India. The same can be said about overseas investors showing active interest in investing in the country. This has made it essential for a legal body to regulate overseas investments and ensure transparency of income from international as well as national sources. This law has been designed to enable the Indian Government to keep a close tab on the income of these investors and also control tax payments on such income. Some of the essential details that have to be entered here are ‘Country of Jurisdiction of Residence’, ‘Tax Identification Number/equivalent of the relevant jurisdiction’, ‘Country Tax Jurisdiction Code as per ISO 3166’, ‘Overseas Address for Communications’, etc. This section is relevant only for resident Indian investors investing overseas.

• Details of Nominated Person: Individual investors can nominate another individual who can invest in mutual funds on their behalf. However, this individual has to be a family member like parents or guardian, sibling, spouse, children, etc.

• Annexure A1: This section is especially included for investors whose permanent address and correspondence address are different. Here, you need to enter your correspondence address and then upload a document proof to support the address provided by you. Acceptable address proofs are utility bills like gas bill, electricity bill, water bill, office account passbook copy, etc. If you don’t attach acceptable documents, your permanent address will be considered as your correspondence address.

• Annexure B1: This is meant for the existing KYC investors who want to nominate a ‘Related Person’ who carry out mutual fund investments on their behalf. Information of the person like his/her name, number on the document for identity proof like Aadhaar, Passport, Voter ID, PAN card, etc. has to be submitted along with the KYC Form. Last but not the least, you have to sign below the Annexure A1 and Annexure B1, along with the date and place to complete filling up the KYC Form.