1. What is the change introduced by SEBI on the KYC process effective from January 01, 2012?
At present, as an investor who invests with different intermediaries in the security market, you need to undergo separate KYC processes with each of them. To create uniform procedures for all SEBI Registered intermediaries, including Mutual Funds, brokers and depository participants, and to avoid duplication of KYC, SEBI has introduced uniform KYC guidelines for the securities market effective January 1, 2012.
2. As per new KYC norms who are the list of SEBI registered intermediaries?
1. Stock Brokers
2. Depository Participants (DPs)
3. Mutual Funds (MFs)
4. Portfolio Managers (PMs)
5. Venture Capital Funds (VCFs)
6. Collective Investment Schemes (CIS)
3. Effective 1st Jan 2012, what are the steps to be taken by me as an MF investor to become KYC compliant?
You need to download the enhanced application form (New KYC Application) from our website www.sundarammutual.com or from www.amfiindia.com or from the website of any other SEBI registered KYC Registration Agencies (KRA), for example, www.cvlkra.com.
You need to fill up the new application form and submit at the offices of any SEBI registered Intermediaries, including Mutual Funds.
Upon submission of documents, and completion of In -Person Verification (IPV) you would receive a temporary acknowledgement from the place you submit the New KYC Application.
The documents are then sent to the KRA either by the Mutual Fund or the Registrar & Transfer Agent (R&T). Within 10 working days after receipt of the same, the KRA will, after verification of the documents, send a letter to you confirming KYC compliance status / the "final acknowledgement" or intimating any deficiency observed in the documents submitted.
4. Is the new KYC procedure, effective January 1, 2012, applicable to both new and existing investors?
The new KYC procedure is applicable for new investors only.
If you are an existing investor in a Mutual Fund and were already KYC compliant before January 1, 2012 you can continue to use the KYC acknowledgement issued for investments in Mutual Funds only. However for investments in the Securities Market, where you may deal with SEBI registered intermediaries other than Mutual Funds, you would need to complete the new KYC procedure.
5. Can the new KYC procedure be done without any accompanying transaction / investment?
Yes, if you were already KYC compliant before 31st December 2011.
However, for those investors who are not already KYC compliant as on 31st December 2011 and for new investors from 01st January 2012, the intermediary can accept the new KYC application only if it is accompanied by a financial transaction.
6. Does the IPV done by one SEBI registered intermediary hold valid for another SEBI-registered intermediary?
7. Where can I submit KYC applications?
You can submit the KYC applications in any of the branches of Sundaram Asset Management Company Limited. For a list of branches, please visit our website www.sundarammutual.com .
8.Is email a registered medium to receive KYC applications?
9. Will KYC be applicable for Micro SIP Investments (Investment through Systematic Investment Plan upto Rs. 50,000 in a rolling 12 month period or in a financial year)?
Yes. Micro SIP application will be accepted along with the required Proof of Identity and Proof of Address as defined in the KYC application form.
10. Who are the List of people authorized to attest the KYC documents?
Notary Public, Gazetted Officer / Manager of a Scheduled Commercial / Co-operative bank or Multinational Foreign Banks (Name, Designation & Seal should be affixed on the copy).
11. Who are the List of people authorized to attest the NRI related KYC documents?
In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy / Consulate General in the country where the client resides are permitted to attest the documents.
12. Can I use the old KYC Application form starting 01st Jan 2012?
No. You would need to make use of the new KYC Application form available at www.sundarammutual.com, website of AMFI or of any SEBI registered KRA.
13. What are the key changes?
1. In-Person-Verification or IPV: It is mandatory for all SEBI-registered intermediaries to conduct IPV of their clients. For Mutual Fund investors, the IPV can be done by either the AMC or the Registrar & Transfer Agents (RTA) or by AMFI/NISM certified Mutual Fund distributors who are KYD compliant, or by Scheduled Commercial Banks in case of direct application for subscription to Mutual Fund units. In addition to existing KYC verification procedures, once the IPV process is also completed, the investor may then be considered KYC compliant under the revised KYC norms, and hence permitted to invest in Mutual Funds (MFs).
2. KYC application form: In view of these enhancements, there are a few changes to the KYC application form. The revised application form is available on our website www.sundarammutual.com and is also accessible at www.amfiindia.com.
14. How do these changes impact you?
If you are an existing MF investor who was already KYC compliant before January 1, 2012, you need not repeat the KYC procedure for investing in Mutual Funds, and you could continue to use the KYC acknowledgement form issued to you for MF investments. However for investments in the Securities Market, where you may deal with SEBI registered intermediaries other than Mutual Funds, you would have to complete the new KYC procedure .
New investors in Mutual Funds have to complete the new KYC process and can use the acknowledgement form issued by the KRA for investing in Mutual Funds and for opening account / transacting with other SEBI-registered intermediaries in the securities market. New investors who were already KYC compliant with other intermediaries in the securities market before January 1, 2012, would still need to undergo the new KYC process once to invest in Mutual Funds.