In accordance with Circular dated April 27, 2007 issued by the Securities and Exchange
Board of India (“SEBI”), Permanent Account Number (“PAN”) issued by the Income Tax
authorities will be used as the sole identification number for all investors (existing
and prospective) transacting in the securities market, including mutual funds, irrespective
of the amount of transaction, with effect from July 02, 2007. SEBI vide its Circular
dated June 25, 2007 has further clarified that until December 31, 2007, the existing
and potential investors not having PAN , should apply for PAN immediately and applications
for investment should be accompanied with the evidence of having applied for PAN.
In view of the above, with effect from July 2, 2007, it is mandatory for all existing
and prospective investors (including joint holders, guardians of minors, NRIs etc)
to enclose a certified copy of PAN card or a copy of the evidence of having applied
for PAN Card, along with the application for investing in the schemes.
Existing Investors
- Those who have submitted PAN Proof earlier: All such investors are required to again
furnish a certified copy with original PAN Card/Letter or self attested copy, duly
verified by any of the attesting authorities mentioned hereunder, by mentioning
their folio numbers.
- All unit holders who have obtained the PAN but have not furnished are requested
to furnish an attested copy of the PAN card by mentioning their folio numbers, without
any delay.
- All unit holders who have not obtained PAN are requested to obtain PAN immediately
and furnish a copy of the PAN card at the earliest. Such unit holders are requested
to furnish a copy of the evidence of having applied for PAN (copy of Form-49A) for
all further transactions in existing or new folios until PAN Card is received.
- Separate communication through letter, sms and email is being sent to all existing
investors.
Prospective Investors
All new investors shall furnish a copy of PAN card for investing in Mutual Fund
Schemes as under:
A. For Transactions from 2nd July, 2007 to 31st December, 2007
Such of those investors who have not obtained PAN, may furnish a copy of the evidence
of having applied for PAN (Form-49A) until December 31, 2007.
- For investment amount less than Rs. 50,000 – A copy of the evidence of having applied
for PAN (acknowledged copy of Form 49A) until the PAN is received. Upon receipt
of PAN, furnish certified copy of PAN, with respective folio numbers, for updation
in their records.
- If the investment is Rs 50,000 or more - A copy of the evidence of having applied
for PAN (acknowledged copy of Form 49A) and Form 60 along with proof of address,
until PAN is received.
B. For Transactions w.e.f. 1st January, 2008
Further, with effect from January 1, 2008, it will be mandatory for all investors
to provide a certified copy of the PAN for all transactions in units of schemes
of the Fund.
Verification of PAN proof
The certification of the PAN can be done by any of the following by verifying the
original PAN Card/Letter:
- The distributor/ broker through whom the transaction is done if PAN proof is self-attested
by investor
- Bank Manager Attestation with his seal
- Notary with his seal
Web Portal Members: Investors transacting through approved Web Portals are also
required to get their PAN validated by their Web Portals, if not done already.
Transactions by unit holders/investors who fail to submit copy of PAN or evidence
of having applied for PAN (Form - 49A) as explained above are liable to be rejected.
KYC FORMALITIES
Independent of the mandatory PAN requirements spelt out above, the KYC formalities
under the Prevention of Money Laundering Act, 2002 (PMLA) and the related guidelines
issued by SEBI also needs to be completed in order to avoid repeated exercise of
KYC compliance for all mutual funds. This one-time verification is valid for investments
across all mutual funds and the process is as follows:
- A KYC application form can be obtained from designated ‘Points of Service’ (POS)
– Investor Service Centres, CVL Centres (CDSL Ventures Ltd.). The POS list can be
found at www.amfiindia.com
- A recent passport size photograph has to be affixed on the completed KYC application
form. Required documents such as the PAN card copy and address proof along with
details of occupation and income should be submitted with it. (The list of documents
required and instructions to fill the form can be found in the KYC application form).
- The completed KYC application form with the required documents should be submitted
to the nearest POS. Kindly note that there is no charge for the verification.
- After verification of the KYC application form and accompanying documents, investors
will receive a letter certifying their KYC compliance. A copy of the letter bearing
the PAN should be attached to the scheme’s application form to avoid rejection.
- Any change in any of the KYC details need to be updated in CVL records only once,
as all Mutual Funds will procure latest information from CVL database for KYC compliant
cases.
If you already have a Mutual Fund Identification Number (“MIN”) (not valid anymore)
and have not provided a certified copy of the PAN, you are requested to complete
the formalities mentioned under the paragraph “Permanent Account Number” to be KYC
compliant.
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