In order to comply with the regulatory provisions under the Prevention of Money Laundering Act, 2002, Rules issued there under and related guidelines/circulars issued by SEBI, KYC formalities are required to be completed for all the investors in mutual funds, including guardians, power of attorney holder, nominee or legal heir.
Pursuant to SEBI circular dated December 23, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and SEBI Circular dated October 5, 2011, regarding uniformity in the Know Your Customer (KYC) process in the securities market and for development of a mechanism for centralization of the KYC records so as to avoid duplication of KYC process across the intermediaries in the securities market, with effect from January 1, 2012 (the Effective Date):
1. SEBI has introduced a common KYC Application Form for all the SEBI registered intermediaries viz. Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment Schemes, etc. New investors are therefore requested to use the common KYC Application Form and carry out the KYC process including In-Person Verification (IPV) with any SEBI registered intermediaries including mutual funds. Refer the link below to download revised KYC form.
2. ING Investment Management (India) Private Limited (IIM India), investment manager to ING Mutual Fund shall perform the initial KYC of its new investors and may undertake enhanced KYC measures commensurate with the risk profile of its investors. IIM India shall upload the details of the investors on the system of the KYC Registration Agency (KRA). Computer Age Management Services Pvt. Ltd., registrar & transfer agent (RTA) of ING Mutual Fund may also undertake KYC of the investors on behalf of ING Mutual Fund. KRA shall send a letter to the investor within 10 working days of the receipt of the initial / updated KYC documents from IIM India, confirming the details thereof.
3. Once the investor has done KYC with a SEBI registered intermediary, the investor need not undergo the same process again with another intermediary including mutual funds. However, IIM India reserves the right to carry out fresh KYC of the investor.
4. Existing KYC compliant investors of ING Mutual Fund can continue to invest as per the current practice. However, existing investors are also urged to comply with the new KYC requirements including IPV as mandated by SEBI.
5. It is mandatory for ING Mutual Fund to carry out IPV of its new investors from the Effective Date. The IPV carried out by any SEBI registered intermediary can be relied upon by IIM India. IIM India and / or NISM/AMFI certified distributors who are KYD compliant are authorized to undertake the IPV for ING Mutual Fund investors. Further, in case of any applications received directly (i.e. without being routed through the distributors) from the investors, IIM India may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.