On March 28, CDSL Ventures announced that investors will be permitted to carry on with their current intermediary in the securities market if their KYC record satisfies the PAN – Aadhaar seeding validation and if their email and cellphone number are verified by KRA.
This implies that these investors may carry on with their systematic withdrawal and transfer plans (STP), or they may redeem their existing folios. But, if these investors wanted to join any new intermediary or invest through a new folio in an AMC, they would have to go through a new KYC according to current regulations.
“Such investors who wish to start a new folio would need to do their KYC again, and they will have to submit these physical documents to one of the RTAs.”
Viral Bhatt, founder, Money Mantra
The markets regulator had earlier stated that investors would have to re-complete their KYC by March 31 if they had not utilized an officially recognized document. On the basis of this, mutual fund distributors (MFD) received letters from registrar and transfer agents (RTAs), specifically Computer Age Management Services (CAMS) and KFin Technologies, informing them that investors’ KYC was incomplete and that they needed to recomplete it by March 31, 2024, if possible.
They had stated that beginning on April 1, these investors would not be permitted to do any more MF operations, including new purchases, redemptions, SIPs, or SWPs, if they failed to complete their KYC. These investors already completed KYC using records like utility bills and bank statements.
