New KYC Rules: Here’s what you should know if you are a Mutual Fund Investor

What is KYC?

KYC stands for Know Your Customer which refers to the process of verifying and authenticating the identity and address of all customers and clients by banks, insurance companies, Mutual Fund companies, and other institutions they are availing financial services.

What is the change from 1st April 2024?

SEBI issued new guidelines on KYC Status with effect from 1st April 2024, where 3 statuses have been mentioned such as Validated✅, Registered📋, and On Hold✋. 

What are the attributes affecting your KYC status?

Types of Documents	Status	Implications	Actions Required
KYC done with Aadhar Submission	Validated	No Implications	No Actions Required
KYC is done using officially valid documents other than Aadhar. (Like driving licence, voter Id, or any other document notified by Govt.)	Registered	Can transact only where investor already has investments allowed.	Do re-KYC for each new AMC or use Aadhar to get validated
Non-official valid documents submitted/ mobile or email not verified	On Hold	All transactions blocked	Submit officially valid documents & verify mobile or email

How to check your KYC status?

To check your KYC status follow the below steps:

Step 1: Visit your KRA website (Links to the KRA website are mentioned in the next point)

Step 2: Click on KYC enquiry.

Step 3: Enter the PAN details and submit

Step 4: The details displayed will indicate the proof/status used for your KYCStep 5: For further assistance, contact the Mutual Fund, RTA (Registrar and Transfer agents) helpline.

What to do if you are a Lxme Investor?

Don’t worry, you can connect with our Money Buddy Team.

Contact Number: 0291 666 1010

Email Id: contact@lxme.in

Links to KRA Websites:

CVL: https://www.cvlkra.com/

NDML: https://kra.ndml.in/kra-web/jsps/pos/KYCClientInquiry_NEW.jsp

CAMS: www.camskra.com

NSE: https://www.nsekra.com/

KARVY: https://www.karvykra.com/UPanSearchGlobalWithPanExempt.aspx

How can you update your KYC status to “KYC Validated”?

– Log in to any of the Mutual Fund’s website

– Then visit the page “Modify/Update KYC” 

– Follow the steps such as entering your details and uploading documents as required.

– Once the EmailID/Mobile number is validated and also other details entered/uploaded are validated by the KRAs with an official database (such as the Income Tax database on PAN,

AadhaarXML/DigiLocker/M-Aadhaar), the KYC status will change to“Validated”.

NOTE:

-For changing your KYC status to “KYC validated” your PAN and Aadhar should be linked.

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