DYK - If you have not done your KYC in MFs, you can withdraw - Liv... http://www.livemint.com/Money/l9IxrtGWyAJ9X6UPnC4hsJ/DYK--If...

DID YOU KNOW MUTUAL FUNDS KYC PERMANENT ACCOUNT NUMBER

DYK - If you have not done your KYC

in MFs, you can withdraw
However, its a good practice to update your MF folios with your KYC.
Kayezad E. Adajania
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First Published: Thu, Mar 21 2013. 07 49 PM IST Share

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Its common knowledge that if you wish to invest in a mutual fund (MF), you need to
comply with the know-your-client (KYC) norms. But if you have invested in a MF, say
years back when KYC was not mandatory, and wish to just withdraw from your MF
schemes, you dont need to get your KYC done. KYC is required to make investments,
not for withdrawing.

Good practice

Though you dont need to get KYC done at the time of withdrawal, its always a good
practice to update your MF folios with your KYC. This is to ensure that you can make
fresh investments into any of your existing MF folios. The good news is that if you
update one folio with your KYC, all your other folios get updated with your KYC as well.

Say, you invested many years back in ve fund houses. This means, you now have ve
folios. Now, if you wish to invest in one of the folios, you will need to get your KYC done
and then submit your KYC acknowledgement. Once you submit it, all other folios will
get updated.

The only pre-requisite here is that all your folios should also have your Permanent
Account Number (PAN). That is because your KYC is linked and mapped to your PAN. So,
if any of the other folios does not have your PAN, then that particular folio will not get
updated with your KYC.

How PAN, KYC started

Ofcials from the MF industry claim that there are many folios in the Rs.8.26 trillion
Indian MF industry, that do not have KYCs registered with them. KYC became
mandatory for all investors only on 1 January 2011. Before that, rules were not so
stringent. However, effective December 2004 those investors who invested Rs.50,000 or
more had to compulsorily give PAN. In July 2007, PAN became compulsory for all,

1 of 2 27-03-2017 11:25
DYK - If you have not done your KYC in MFs, you can withdraw - Liv... http://www.livemint.com/Money/l9IxrtGWyAJ9X6UPnC4hsJ/DYK--If...

irrespective of the amount invested. KYC was introduced for MFs for the rst time in
2008. From 1 January 2008, investors who invested Rs.50,000 or more had to submit
their KYC. And in January 2011, it nally became mandatory for all MF investors.

Even though there is no need to do your KYC if you dont wish to make any fresh
investments in your MF accounts (assuming where you had invested in MFs years ago
without KYC), its always a good practice to get your KYC done. Because if and when you
invest in other stock market intermediaries also, you will need to get your KYC updated.

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First Published: Thu, Mar 21 2013. 07 49 PM IST Share

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