Everything about KYC

Modified on Fri, 20 Oct 2023 at 02:17 PM

What is KYC?

KYC stands for ‘Know Your Client’ which is used for the client identification process. SEBI has prescribed requirements relating to KYC for financial institutions including mutual funds to know their clients. This requires verification of identity and address, providing information of financial status, occupation etc. An individual needs to be KYC-compliant before investing in any mutual fund scheme. 


How do investors complete KYC online?

New investors (without prior KYC) can complete their online KYC through Aadhaar OTP-based authentication.


Is it mandatory to have PAN, mobile number and email ID For Online KYC?

Yes.


What if investors apply through one of the KRA for KYC enrolment?

If an investor has done KYC with any one of the KRA, then he does not need to do KYC registration again.


Do investors need to submit the physical KYC application form or the physical copy of the ID and address proof documents?

No. This is the 100% online process, no need to submit physical forms.


Is there an amount restriction on investment for investors completing their online KYC?

No.


How can investors check their KYC status?

An investor can visit any of the KRA’s websites and check the status of their KYC registration.


Are there any charges for completing Online KYC?

No, the process is entirely free of cost.


Can investors do stand-alone KYC without purchase?

Yes, you can submit the details for KYC without a purchase transaction. Zerodha Mutual Fund creates a “Zero Folio” in this case.


What type of communication will be sent to investors after completing online KYC?

KRA will send an email to the investor’s registered email id.


Can we accept the KYC formalities through E-Mail?

No, the applicant needs to do the KYC process on the website.


Will the investor's purchase transaction get rejected if KYC gets rejected by the KRA?

Yes, the application will be rejected and the amount will be refunded.


Can I invest without KYC?

No. SEBI (Mutual Fund) Regulations require you to be KYC Compliant. In case you are not KYC Compliance but hold a valid PEKRN, you can invest up to 50,000 Rs in Zerodha Mutual Fund in a single financial year. 


Can we accept the change in the details of the investor via E-Mail?

No, in case an investor needs to fill the KYC change details form along with requisite documents.


What is the Foreign Account Tax Compliance Act (FATCA)? Is it mandatory?

FATCA is a USA tax law that requires US citizens to file annual reports on any foreign account holdings.


What is Central KYC Registry?

Please refer to the CERSAI's FAQs - https://www.ckycindia.in/ckyc/?r=faq

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