What is KYC (Know your client)?
KYC or Know Your Customer is a customer identification process. The Securities and Exchange Board of India (SEBI) has laid down guidelines
under the Prevention of Money Laundering Act 2002, which makes it binding for financial institutions and financial intermediaries like mutual
funds to acquaint themselves with their customers. KYC process helps prevent money laundering and other suspicious transactions.
With effect from January 1, 2012 all categories of investors irrespective of amount of investments Mutual Funds are required to comply with KYC for carrying out any transactions in Mutual
Funds. Thus, all applicants investing into mutual funds would be required to be KYC
compliant by any KYC Registration Agency (CAMS, KARVY, CVL, NSE or NSDL) without which
the transactions may be liable to be rejected by the respective mutual fund houses.
Please note KYC norms are mandatory for ALL applicants/investors (including existing investors and joint holders) while investing with any SEBI registered Mutual Fund, irrespective of the amount of investment.